Middle class paychecks shrink by 1.7 percent with ‘cliff bill’

Obama with middle class

Obama giving a “pep speech” in support of the fiscal cliff deal with a group of middle-class taxpayers. They were smiling then — are they still?

The fiscal cliff bill Congress recently passed in the wee hours will mean a bigger proportional hit to middle-class taxpayers than those earning substantially more.

According to the Washington, D.C. based Tax Policy Center, an independent joint venture of the Urban Institute and the Brookings Institution, those earning between $200,000 and $500,000 will pay an average of 1.3 percent more in taxes. However, those taxpayers earning between $30,000 and $200,000 will see their paychecks shrink by about 1.7 percent.

In 2010 a Democratically-controlled Congress was embroiled in negotiations and debate over the Affordable Care Act — Obamacare. On March 9 of that year, U.S. Rep. Pelosi, D-Calif., famously said of that legislation, “We have to pass the bill so that you can find out what is in it, away from the fog of controversy.”

After it passed, America likes the legislation less and less.

In this instance, President Obama and the Democrats rammed the 150-page fiscal cliff deal down the throat of a Congress that was given just six minutes to read it. As a result, almost 80 percent of taxpayers will take a bigger hit in their paycheck.

“The economy needs a stimulus, but under the agreement, taxes will go up in 2013 relative to 2012 – not only on high-income households, as widely discussed, but also on every working man and woman in the country, via the end of the payroll tax cut,” said William G. Gale, co-director of the Tax Policy Center.

Read more at The Daily Mail.

Related article:
Senate given 3 minutes to read ‘fiscal cliff’ bill

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About Michael Dorstewitz

Mike has been with BizPac Review almost from the beginning. Follow him on Twitter at @MikeBPR.

  • KB Cook

    Elections really DO HAVE CONSEQUENCES — many more layers to come. WAKE UP AMERICA!

  • John

    All you people who wanted him back in office are getting what you deserve(especially the entitlement ones).But we the ones who did not want him back in office are suffering too.And it's only the beginning now he is going after our 2nd amendment which he is going to have problems with that one

  • John

    ALL YOU PEOPLE ARE GETTTING WHAT YOU DESERVE WHOEVER VOTED HIM BACK IN(I AM SURE TH PEOPLE WHO THINK THEY DESERVE THIER ENTITLEMENTS ARE).WE WHO VOTED AGAINST HIM ARE SUFFRING TOO UNFORTUNATELY.YET THEY ARE SPENDING MILLIOMS OF TAXPAYERS DOLLARS GOING ON VACATION WHICH THEY SHOULD BE PAYING FOR THEM THEMSELVES,THEY ARE NOTHING MORE THAN A BUNCH OF LEECHES.NOW HE IS ATTACKING OUR CONSTITUTION GOING AFTER OUR 2ND AMMENDMENT AND HE IS ONLY BEGINNING.ARE YOU PEOPLE HAPPY YET,WAKE UP AMERICA

  • BOB

    FUCK THE GOVERNMENT!!!!!!!!!!!!!!!!!!!!!! OMORON A LYING PHONEY!!!!!!!!!!!!!!! GOD HELP THIS COUNTRY!!!!!!!!!!

  • Alice

    Funny……the NY Times is reporting the increase in taxes on the wealthy, but it is saying nothing about an increase in taxes on the middle class. Is there anywhere I can fact-check the claim that lower earners will see their paychecks shrink by 1.7%?

    • bessie morro

      it has been posted for some time now that anyone paying 34% in 2012 will be paying 36% come 2013……i researched it a while back and every one that was pro obama called me a lier. guess what I WASN'T LYING

  • Lynda Sumners

    A friend got his 1st paycheck this year, (paid weekly) and he was shocked to find that there was $30.00 more held out for his Social Security payment. A total of $53.00 dollars (a week). I wonder if his employer has to pay the same amount???

  • Renata

    Employers' contribution remains the same (6.2%), but for employees it increased from 4.2% to 6.2%