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Mon Dec 31, 2012, 07:34 PM

Under Obama’s Tax Plan, Middle Class Will Get Higher Tax Increases Than Many Rich People

Horrible. Click through to see the chart:


President Obama has endorsed a tax deal that would give households up to $450,000 an extension of the Bush tax cuts. The plan would also reportedly allow the rich to keep a lower estate tax than is currently planned for 2013 (55% for estates worth more than $1 million). This is a tax cut for many rich Americans.

Because the payroll tax is expiring and the Make Work Pay tax cut is not coming back, most working Americans will also see a tax increase. The most galling thing is that 98 percent of Americans will actually see a larger tax increase than some of the richest Americans. Working with our friends at the Center for Economic and Policy Research, we compiled the following chart to demonstrate this.

Read more: http://boldprogressives.org/under-obamas-tax-plan-middle-class-will-get-higher-tax-increases-than-some-rich/

26 replies, 3081 views

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Arrow 26 replies Author Time Post
Reply Under Obama’s Tax Plan, Middle Class Will Get Higher Tax Increases Than Many Rich People (Original post)
Report1212 Dec 2012 OP
Jackpine Radical Dec 2012 #1
Report1212 Jan 2013 #20
Jackpine Radical Jan 2013 #21
TexasBushwhacker Jan 2013 #23
bluestateguy Dec 2012 #2
Report1212 Dec 2012 #3
Sekhmets Daughter Dec 2012 #5
Report1212 Dec 2012 #6
Sekhmets Daughter Jan 2013 #16
Sekhmets Daughter Dec 2012 #8
Sekhmets Daughter Dec 2012 #4
ProSense Dec 2012 #7
Sekhmets Daughter Dec 2012 #9
Report1212 Dec 2012 #14
doc03 Dec 2012 #10
Igel Dec 2012 #11
Report1212 Dec 2012 #12
Demo_Chris Dec 2012 #13
Report1212 Dec 2012 #15
Yo_Mama Jan 2013 #17
Report1212 Jan 2013 #19
Honeycombe8 Jan 2013 #18
Major Nikon Jan 2013 #22
bhikkhu Jan 2013 #24
Report1212 Jan 2013 #25
TexasBushwhacker Jan 2013 #26

Response to Report1212 (Original post)

Mon Dec 31, 2012, 07:38 PM

1. I think this is dead.

No deals have been made.

We're going off the cliff.

Yes, everyone's taxes will go up--momentarily.

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Response to Jackpine Radical (Reply #1)

Tue Jan 1, 2013, 10:26 PM

20. Doesn't look dead now unfortunately nt

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Response to Report1212 (Reply #20)

Tue Jan 1, 2013, 10:57 PM

21. Well, I thought Wisconsin was gonna win the Rse Bowl too.

I have a perfect record for the day so far.

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Response to Jackpine Radical (Reply #1)

Tue Jan 1, 2013, 11:07 PM

23. As long as capital gains is taxed differently than wages, that will always be the case

As long as you've had the good fortune to make enough or inherit enough that you have money to invest, those earnings are taxed at a lower rate than wages from the sweat of ones brow. Percentage wise the higher income person is getting a break because payroll taxes are not progressive like income taxes. Because of the cap, they are essentially regressive. That's why the people who argue for a flat tax just don't get it. The breaks for capital gains and payroll taxes for the wealthy already "flatten" tax rates.

FWIW, I think the payroll taxes need to go back up. That's better than cutting Social Security benefits.

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Response to Report1212 (Original post)

Mon Dec 31, 2012, 07:39 PM

2. Fine. Extend the payroll tax cut.

And then we can listen to a bunch of other DUers bitch and complain about Obama undermining Social Security.

I wash my hands of it all.

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Response to bluestateguy (Reply #2)

Mon Dec 31, 2012, 07:44 PM

3. Ever heard of the Make Work Pay tax credit?

There are other ways to compensate for payroll tax cut...and if you're taking that away from the middle class at least tax the rich a bit more. Don't let the rich get off easier than the middle class.

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Response to Report1212 (Reply #3)

Mon Dec 31, 2012, 07:47 PM

5. Isn't that the EITC?

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Response to Sekhmets Daughter (Reply #5)

Mon Dec 31, 2012, 07:49 PM

6. MWP was actually an invention of the stimulus bill

I think it went away in 2010 but don't quote me on that.

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Response to Report1212 (Reply #6)

Tue Jan 1, 2013, 08:37 AM

16. The reason I was confused is because MWP

was used to describe the EITC in its early days. Yes, it did expire in 2010 so had no bearing on the cliff debate. I had to google it last night

Happy New Year!

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Response to Report1212 (Reply #3)


Response to bluestateguy (Reply #2)

Mon Dec 31, 2012, 07:46 PM

4. Really frustrating isn't it? n/t

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Response to Report1212 (Original post)

Mon Dec 31, 2012, 07:49 PM

7. What's the point?

"Because the payroll tax is expiring and the Make Work Pay tax cut is not coming back, most working Americans will also see a tax increase. "

Going over the cliff, which allows all the tax cuts to expire, is better than any ridiculous deal, but the concern is for a payroll tax cut that no one wants to extend?

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Response to ProSense (Reply #7)


Response to ProSense (Reply #7)

Mon Dec 31, 2012, 10:56 PM

14. You could replace that tax cut with another if you chose nt

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Response to Report1212 (Original post)

Mon Dec 31, 2012, 08:17 PM

10. Fine they never should have done the payroll tax cut in the

first place. I'm Ok with the Make Work Pay tax cut if they brought that back. We do have a debt of over $16 trillion, I think we should pay more or we will end up like the EU.

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Response to Report1212 (Original post)

Mon Dec 31, 2012, 08:21 PM

11. Does that nice chart include the increased capital gains tax or the Medicare surcharge?

And if the lowest group is getting an unfairly large tax increase, doesn't that mean that they got a larger tax decrease to begin with?

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Response to Igel (Reply #11)

Mon Dec 31, 2012, 10:18 PM

12. Cap gains is a tax on investments

It's hard to say who invests and who doesn't, it's actually a tiny or large group of Americans depending on who you ask

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Response to Report1212 (Reply #12)

Mon Dec 31, 2012, 10:40 PM

13. Cap gains is a tax on the income earned from the sale of assets

 

The exact same thing that every business owner does every day: buy low and sell high. We came up with a cool new label for it to reward the blue collar investor class.

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Response to Demo_Chris (Reply #13)

Mon Dec 31, 2012, 11:50 PM

15. I feel you nt

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Response to Report1212 (Original post)

Tue Jan 1, 2013, 09:21 AM

17. That's right

The FICA increase, under current year assumptions, will be more than double the income tax increase. So over ten years, the FICA increase would bring in over 1.2 trillion, whereas what's being said about the tax increases on the very top brackets is that they will bring in 600 billion over ten years.

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Response to Yo_Mama (Reply #17)

Tue Jan 1, 2013, 03:43 PM

19. Incredible nt

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Response to Report1212 (Original post)

Tue Jan 1, 2013, 09:25 AM

18. Payroll taxes: Those who receive the benefits are the ones who pay into it...up to a point.

That makes sense to me.

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Response to Report1212 (Original post)

Tue Jan 1, 2013, 11:04 PM

22. You can't equate the Bush tax cut with the payroll tax cut

The payroll tax cut was clearly, unquestionably, and unambiguously temporary. Everyone either knew this or should have known this. It was good for the economy while it lasted, but nobody realistically expected it to last longer than 2 years and that includes folks from both sides of the isle.

The Bush tax cuts were something entirely different. Even though a sunset provision was written in, everyone knew the GOP was not going to let go of tax cuts for the rich without kicking and screaming all the way. The only reason some token middle class tax cuts were included was to make it more palatable and to make it harder to let them go.

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Response to Report1212 (Original post)

Tue Jan 1, 2013, 11:10 PM

24. First, that's only if they die. And second, the payroll tax isn't a tax

its a contribution toward one's retirement.

So, no, I don't think that's a particularly useful way to put things.

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Response to bhikkhu (Reply #24)

Tue Jan 1, 2013, 11:45 PM

25. It's literally a tax

And it's a regressive one because it's subject to a cap. Lift the cap.

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Response to bhikkhu (Reply #24)

Wed Jan 2, 2013, 12:20 AM

26. No, it is not a contribution to your retirement. Never has been

It's a tax that keeps our elderly, disabled, widows and their children from living on the street. It is an insurance program. The real name is OASDI - Old-Age, Survivors and Disabled Insurance. Ever heard of your Social Security and Medicare called FICA taxes? That stands for Federal Insurance Contributions Act.

Insurance is a funny thing. Normally we hope we never have to make a claim. If you never have to make a claim on your auto insurance do you feel ripped off or lucky? I hope you feel lucky. How do you "win" with life insurance? Die early? If we're lucky, we'll live long enough that we'll get some Social Security benefits. Maybe we'll live to be 90 and get more benefits than we put in. But if you die when we're 28 and have 3 kids like my roommate's husband did 32 years ago, you're still a "winner", because your survivors are provided for. If you have cerebral palsy and you're quadriplegic like my cousin's daughter, and have no hope of ever living independently, you're a Social Security "winner" because you get a tiny monthly check even though you were never able to contribute. Do you want to switch places with her? We are all Social Security beneficiaries even if we don't make it to retirement age, because having insurance has value.

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