Wednesday, February 16, 2011

You and Me, we got a tax increase, while the wealthy got their tax cut. Thank you Republicans…and Obama

Tax.com’s David Cay Johnston revealed something many of us didn’t know; we got a tax increase.
Not the wealthy, they got their Bush tax cut extended, but the rest of us saw our huge tax cut...dropped!! The reason many of us didn't know we got the tax increase, is because most of us didn't know we got the tax cut, in the first place.
Last fall Michael Cooper of The New York Times asked North Carolinians at the Pig Pickin' and Politickin' rally about the Obama tax cuts. "Say what?" was the basic response, even though 97 percent of Americans got a tax break that averaged $1,200 over two years.One survey found that fewer than 10 percent of Americans were aware of the Making Work Pay tax credit.

 
Tax.com: The tax compromise passed in December has been hailed everywhere as a payroll tax cut combined with an extension of the Bush tax cuts, despite the fact that it raised taxes on a third of Americans. The killing of Obama's Making Work Pay tax credit, which the White House called the biggest middle-income tax cut ever, Among the poorest fifth of tax units, whose annual cash income is less than $17,878, two-thirds got hit with a tax increase. On average, their taxes went up $134, which is 1.3 percent of this group's total cash income. 
Consider a single worker who makes $6,000. That was the average wage of the bottom third of workers in 2009, the Medicare tax database shows. Killing the Making Work Pay credit in favor of the payroll tax cut amounted to a tax increase of $252, or 4 percent of total income. 
Looked at another way, some workers will labor for 23 days this year and next just to payincreased taxes. The pattern of the Republican-Obama tax plan is a clear stepladder in which the more you make, the more you benefit, and the less you make, the more you pay. This is a form of socialism: upward redistribution to enrich those at the top.
Johnston also went after Rep. Paul Ryan's claim that revenues aren't the problem, spending is:

 

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