Taxing the Middle Class

It doesn't matter which party sponsors it or which party fights it tooth and nail – any tax package that causes taxes to rise significantly on the middle class should prompt a "throw the bums out" campaign that will jolt Congress indiscriminately. It should, but given America's private history it probably won't even if some of the numbers in this Washington Post story end up becoming reality.

So although households earning $100,000 to $200,000 a year would save about $7,000 from the lower tax rates in the GOP plan, those savings would be swamped by eliminating major deductions, according to the report by the Democratically controlled congressional Joint Economic Committee.

The net result: Married couples in that income range would pay an additional $2,700 annually to the Internal Revenue Service, on top of the tax increases that are scheduled to hit every American household when the George W. Bush-era cuts expire at the end of the year.

Households earning more than $1 million a year, meanwhile, could see a net tax cut of about $300,000 annually.

“According to this report, while millionaires will receive a huge tax break, earners making under $200,000 will see their taxes rise significantly,” said Sen. Robert P. Casey Jr. (D-Pa.), who chairs the Joint Economic Committee.

If you read the whole article you'll see that the analysis is based on some assumptions about likely tax breaks for the wealthy and the elimination, or reduction, of certain tax breaks for the middle class. That's why there's a healthy dose of the unknown tied to the story, but given the past history of the parties involved some of those assumptions are likely accurate, and given the proclivity of the powers-that-be to rob from the middle to pay the very-rich it's a safe bet that those making less than $200k a year are looking down the barrel at a healthy screwing.

Here's a nice table to drive that point home:

Middleclassscrew

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