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01-05-13, 08:26 PM #1
Bigger Tax Bite for Most Under Fiscal Pact
WASHINGTON — Only the most affluent American households will pay higher income taxes this year under the terms of a deal that passed Congress on Tuesday, but most households will face higher payroll taxes because the deal does not extend a two-year-old tax break.
The legislation, which was forged in the Senate and overcame resistance in the House late Tuesday will grant most Americans an instant reversal of the income tax increases that took effect with the arrival of the new year. Only about 0.7 percent of households will be subject to an income tax increase this year, according to the Tax Policy Center, a nonpartisan research group in Washington. The increases will apply almost exclusively to households making at least half a million dollars, the center estimated in an analysis published Tuesday.
But lawmakers’ decision not to reverse a scheduled increase in the payroll tax that finances Social Security, while widely expected, still means that about 77 percent of households will pay a larger share of income to the federal government this year, according to the center’s analysis.
The tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700.
Indeed, for most lower- and middle-income households, the payroll tax increase will most likely equal or exceed the value of the income tax savings. A household earning $50,000 in 2013, roughly the national median, will avoid paying about $1,000 more in income taxes — but pay about $1,000 more in payroll taxes.
Sabrina Garcia, a 35-year-old accounting assistant from Quincy, Mass., who together with her husband made about $102,000 last year, said the payroll tax increase equated to “about $200 a month for my family.”
“That’s a lot of money for us,” Ms. Garcia said. “It means we will have to cut back.” She said in an e-mail exchange that she will most likely will postpone buying a new computer. “And forget about being able to save money,” she added.
But Mr. Interlandi, who estimated that he worked 100 hours many weeks, added that the payroll tax increase still meant he will need to spend even more time on the road. Describing things he will have to cut back on, he wrote, “Family outings like vacations, and time together.”Do not war for peace. If you must war, war for justice. For without justice there is no peace. -me
We are who we choose to be.
R.I.P. Arielle. 08/20/2010-09/16/2012
01-05-13, 11:26 PM #2
Good. Exactly what we deserve for electing Obama.That which does not kill me, better start fucking running.
If I lived every day like it was my last, the body count would be staggering.
I intend to go in harm's way. -John Paul Jones
Hunt the wolf, and bring light to the dark places that others fear to go. LT COL Dave Grossman
I'd be a better people person if I was around better people.
01-07-13, 04:33 PM #3
What does Obama care? He gets $7,000,000 vacations on the taxpayers dime. He is the most arrogant , hypocritical, pompous buffoon the people of this country were stupid enough to elect.For the morning will come. Brightly will it shine on the brave and true, kindly upon all who suffer for the cause, glorious upon the tombs of heroes. Thus will shine the dawn.
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