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.
Senate given 3 minutes to read ‘fiscal cliff’ bill