With the fiscal cliff averted 77% of Americans will face a tax increase
As we all know, yesterday the Congress swept in and saved the day by coming to an agreement to avert the fiscal cliff and the tax increases which almost every American would have to pay if we fell over the cliff and remained there.
Barack Obama went on television and proclaimed that this deal kept taxes from increasing on 98% of Americans and 97% of small businesses while Republicans who supported the deal justified it using the same measuring stick.
And that would be great if it were true, but it is not as we can see in this article.
It is true that the Bush era tax cuts will remain in place, but what neither side wants to mention is the fact that the payroll tax cut which Barack Obama signed during his first term was allowed to expire. According to the Tax Policy Center this means that taxes will actually rise on 71% of all American households. That is quite different than the numbers supporters of this legislation are touting, isn’t it?
On top of that, 80% of households earning between $50,000 and $200,000 will face tax increases with the average increase being $1,635 a year. And this is considered a victory for the middle class? Oh, and it adds an additional $4 trillion to the debt, just in case you were wondering.