Tax Tables Don't Lie
Only 40 more days before the end of the very politicized Bush Tax break for the wealthy. Tax break for the wealthy is how it was marketed, publicized and demonized by many in the left versus right, Democrat versus Republican frenzy, and the rise of the Tea party. The same public figures and various other pundits who convinced their followers and voters that the tax increase was only going to impact the wealthy did an excellent job. They not only did an excellent job but even convinced their followers that higher taxes for the wealthy was right, moral and also villianized the wealthy and the corporate America that provides employment for virtually every employed person in the country. What they did not tell everyone in the rhetoric was that the so called Bush tax cut for the wealthy also gave a higher percentage tax cut of 26% for the middle class.
In 40 days the Middle Class, or those married making $50,000 will be thanked for their support of President Obama by receiving a 26% increase in their 2011 federal income tax rate. I am sure we can all remember many examples of the promises on how only the wealthy would see a tax increase and how the wealthy, or those who make over $200,000 or $250,000, depending on which version we hear, can afford to pay more taxes.
No matter what a politician may say, there is always one thing that will always be true and trusted, at least for its accuracy, and that is the actual tax tables. The graph to the right was prepared by the Tax Foundation ( http://www.taxfoundation.org/blog/show/22958.html ) and compares Income Taxes under Bill Clinton and George Bush.
The numbers don’t lie and those of us who are old enough to remember can remember the higher taxes for everyone during the Clinton years, and also remember the very visible decrease in taxes we paid during the Bush years. By us I don’t mean the wealthy, I mean those of us who were making $50,000 and much, much less.
The cruel irony of the new tax rate is that the very people who believed and voted for President Obama are the ones who will end up paying more taxes, and a higher percentage than the wealthy. The outer right column on the chart shows that every income category will see an increase and married making $50,000 will pay 26% more in taxes.
Finally, for myself it is not as much as a issue of the tax rate for everyone being increased (although it is an issue), after all, President Obama did say he felt that the wealthy could afford to pay more and has voiced his personal views and approval of taxing the rich and redistribution of wealth. The bigger issues is integrity of politicians, telling the people that only the wealthy will see an increase and creating an Us and Them environment in the country. Unless the President proposes to the House and Senate to extend the Bush tax policy, everyone will see an increase, which to some of us translates into, “You Lied to Us.” The word “Lie” is a harsh word for the political world that they don’t like to use, even towards each other in election campaigns, they prefer to call it “Marketing.”
For more on this topic and other economic related topics you can visit the link below. The CARPE DIEM blog is by Professor Perry from the University of Michigan.