Just for reference, US Median Household Income is $44,389. Median means 50% make more than that, and 50% make less.
Who Loses Under Obama’s GOP Tax Compromise? The Working Poor
By CHARLES WALLACE, AOL Daily Finance
Posted 6:30 AM 12/09/10
“Single working people with earnings below $20,000 and married couples with earnings below $40,000 are worse off under the payroll tax cut proposals in the compromise between the president and the Republicans,” explains Bob Williams, a senior fellow at the Washington, D.C.-based Tax Policy Center.
Here’s why: The Obama proposal substitutes a Social Security payroll tax cut for the Making Work Pay credit, which was targeted to do the most good for low-income families. Under current rules, the working poor receive $400 when they earn at least $6,452 a year through the Making Work Pay credit. Married couples with earnings above $12,900 get $800 under the program.
The compromise cuts the Social Security payroll tax from 6.2% to 4.2%, so a couple wold have to earn $40,000 to get the same $800 tax benefit. Every working-class couple earning less than that will get less than $800, meaning they lose money under the Obama proposal.
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The rich, however, do really well. A worker earning $106,800, the maximum amount of income subject to Social Security tax, stands to save $2,136 in payroll taxes. A married couple with both spouses making over $100,000 will actually save $4,272.Obama had been saying for months that he wanted to increase the tax burden on the wealthy while keeping it the same for the middle class. But the new plan actually increases the tax burden on the lowest-income working families. “If you are worried about who needs the money and are trying to help people, targeting the cuts to the wealthy who don’t need it seems the wrong way to go,” Williams says.
So Barack Hussein Obama’s “Tax Compromise” is actually a TAX HIKE for almost 50% of Americans.
Way to sell-out a campaign promise Mr. “I’ll never raise taxes on those earning less that $250,000”.
And just to benefit the richest 2%.
What a disgusting liar.
2 comments
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Saw this yesterday. David Mizner posted it at DK
You’ll Never Guess Whose Taxes Are Going To Go Up Because Of The Tax Cut ‘Compromise’
This crap is finally getting out now that the House Dems started squealing about the estate tax