The latest tax increase will fall heavily on the 75% of households that make less than $113,700
From Jim Quinn of The Burning Platform:
… The American people are being played by the powerful interests that provide them with an illusion of choice.
Both parties serve the interests of their masters, and the fiscal cliff show and debt ceiling show are a form of reality TV to keep the masses alarmed, fearful, and believing there is actually a difference between the policies of the ruling class.
The charade has played out in its full glory in the last few weeks with Obama convincing the masses he had stuck it to the rich, while in reality the working middle class got it good and hard when they got their January paychecks…
The funniest part of this fiscal fiasco farce is watching the reaction of the sheep who believed Obama and the mainstream media storyline.
Obama was able to raise the published top rate on people making over $400,000. The newly defined “rich” laughed heartily as they know only fools pay anywhere near the top rate. The rich just call their tax advisor and instruct them to use one of the thousands of tax loopholes in the 75,000 page IRS tax code to “legally” avoid the new Obama rates.
Meanwhile, both parties and their mainstream media mouthpieces downplayed the 2% payroll tax increase on every working American.
This tax increase has been a complete surprise to the reality TV zombies and Facebook aficionados. Even college-educated professionals in my office had no idea their next monthly paycheck was going to be $150 to $200 lighter.
This will wipe out most, or all, of the annual raise they received. The tax will fall heavily on the 75% of households that make less than the $113,700 Social Security cutoff.
For a struggling family of four earning the median income of $50,000, the $1,000 less in their paychecks will mean less food, putting off trips to the doctor, driving on bald tires, or not taking the family on a vacation to the Jersey shore.
The $2,274 increase in taxes (.57%) for the Wall Street banker making $400,000 probably won’t put too much of a crimp in his Hamptons lifestyle.
The joke is on the American people as the rich will ante up maybe $50 billion of taxes in 2013, while the working middle class will be skewered for $125 billion. How’s that “Tax the Rich” slogan working out for you?
Only in the Orwellian capital of Washington D.C. would a bill that was supposed to provide tax relief to the middle class and spending cuts to reduce the deficit, actually increase the tax burden of a median household by $1,000 and perpetuate the pork spending payoffs to campaign contributors and friends of the slimy politicians that slither through the halls of Congress.
The list of pork and bribes should be nauseating to hard-working Americans across the country:
|•||$30 billion extension of the 99 weeks of unemployment benefits, even though we are supposedly in the third year of economic recovery. Continuing to pay people to not work for two years will surely boost employment.|
|•||$14.3 billion for a two-year extension of the corporate research credit benefiting large technology companies like IBM and Hewlett Packard.|
|•||$12.2 billion one-year extension of the production tax credit for wind power.|
|•||$11.2 billion two- year extension of the active financing exception, which lets GE, Caterpillar Inc. (CAT), and Citigroup Inc. (C), among others, defer taxes on financing income they earn outside the U.S.|
|•||$1.9 billion extension of the Work Opportunity Tax Credit for hiring workers from disadvantaged groups, benefitting mega-restaurant chains like McDonalds.|
|•||$1.8 billion extension of the New Markets Tax Credit for investments in low- income areas, benefitting JP Morgan and other Wall Street shyster banks.|
|•||$650 million tax credit for manufacturing energy-efficient appliances, benefitting mega-corps like Whirlpool.|
|•||$430 million for Hollywood through “special expensing rules” to encourage TV and film production in the United States. Producers can expense up to $15 million of costs for their projects. NBC thanks you.|
|•||$331 million for railroads by allowing short-line and regional operators to claim a tax credit up to 50% of the cost to maintain tracks that they own or lease.|
|•||$248 million in special expensing rules for films and television programs.|
|•||$222 million for Puerto Rico and the Virgin Islands through returned excise taxes collected by the federal government on rum produced in the islands and imported to the mainland.|
|•||$78 million for NASCAR by extending a “7-year cost recovery period for certain motorsports racing track facilities.”|
|•||$59 million for algae growers through tax credits to encourage production of “cellulosic biofuel” at up to $1.01 per gallon.|
|•||$4 million for electric motorcycle makers by expanding an existing green-energy tax credit for buyers of plug-in vehicles to include electric motorbikes.|
So when you see the cut in your take home pay, just comfort yourself knowing that…