Posted on 10/03/2012 4:23:49 AM PDT by sr4402
Joe's middle class family has a taxable income of a meager $17,399 and he barely gets by. So he was dismayed to find out he was getting a 50% Federal Tax rate increase. On top of this, he learned there was to be a 30% increase in his social security tax payments. But he really began to cry when he saw his bare bones medical insurance premium skyrocket due to Obama's "Affordable" Care Act" (PPACA). Joe really wants everyone to let the Democrats know how he feels this November.
Social Security Tax Rate Increase in 2013
Obamacare Dramatically Increase Premiums for Young Workers
Please let the Democrats know how Joe feels at the ballot box this November.
If Joe has a family and makes less than $18K, he is not getting a tax increase, he is getting a decrease in how much taxpayer money the govt gives him as a “credit”
Big difference
But Joe will vote democrat to keep his handouts maximized
As long as the Raiders win, Joe don’t care.
If he only has $17k in taxable income, how can he be described as “middle class”? If we did have an income based class system, which we do not, that would clearly be considered lower class. The premise of the article is false.
Go ahead, I'll bite. How does this work on a "taxable income of a meager $17,399". Go ahead, show me.
Joe doesn't care that he's out about 2294$ if his healthcare premium goes up $1000? Interesting way to care about the poor.
Ah yes, for a dollar he can dream about it. But not with all these higher taxes and the premium increase.
But Joe is a good neighbor and thinks about his friend in the middle class bracket who will pay the $1294 and a bit more with SS taxes going up 30%.
I pulled up a recent return (2008) - mine was less and I’m definitely in the middle class.
Line 43 of the 1040 is labeled Taxable Income. It is the amount after subtracting the standard deduction (or itemized) and the $3500 per person exemptions. After subtracting $10,900 and $28000 ($3500 X 8) I was below $17k.
OK, where’s the decrease?
Joe is a suburban closet racist who doesn’t live in ‘our’ neighborhood.
If the Bush tax cuts are allowed to expire the current lowest rate of 10% will no longer exist and the new (or even older) 15% will be in effect.
So interesting watching folks try to justify the tax increases. Nobody is biting on the premium increases yet. Wonder who will do that?
If Joe has a family (say, a wife and 2 kids), with that income level, he is not paying income taxes. By the time the deductions for each dependent are taken, plus anything else he can itemize, 401(k) contributions, etc., he will be below the income level needed to pay taxes. But he is probably using earned income credit (gives money back), and/or things like child/dependent care coverage credits, which will possibly be reduced. I think the earned income credit can actually pay cash to the “taxpayer”. I don’t know whether this EIC is reduced under the new taxes structure. (I am not an accountant but I once pretended to be one.) Joe may not actually have a decrease in how much money he gets from us.
Think, no kids, just a wife, TAXABLE INCOME (that actual taxes will be paid on).
Good try obfuscating the lower bracket tax increases.
It’s Bush’s fault!
http://keithhennessey.com/2010/04/15/off-the-rolls/
If “Joe” has a family (kids) he can make almost up to $50K and pay no taxes and actually get money back in the form of additonal “credits” for his children.
Joe is definitley in the 47%, pal. And he probably is voting for obama.
I was answering this question:
“If he only has $17k in taxable income, how can he be described as “middle class”? “
I was pointing out that the $17 taxable income is after deductions, which means a total income of at least $34,900 if he’s married with no kids, $41,900 with 2 kids, $48,900 with 4 kids, etc. I would put that in the middle class.
Now I’ll try your question. If FICA is a benefit we pay for, than refunding FICA is a handout. If one’s tax is zero (withholding is all refunded) and one receives a refund of about $5K in FICA as well (while still receiving credit for paying FICA), then one has received a $5k handout from the taxpayers. The per-child tax credit makes it possible to get there.
Any “tax increase” on this person that is less than $5K is not a tax increase, it is a reduction in the handout from the taxpayers.
There have been programs that allowed the handout to exceed even the FICA premium - the Making Work Pay was one, and I believe EIC can also do it (although I’m not sure.)
Is there a “reduction in handout” coming up? I don’t know, but I’m sure they will try to call it a tax increase.
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