Despite President Barack Obama’s promises that he would never, ever, ever, raise taxes on people making less than $250,000 year, a new analysis from the Tax Policy Center -- citing a new tobacco tax that will hit some low-income families harder than the rest -- indicates he's breaking that oath.
Upon closer examination of the budget, it's revealed Obama raises taxes on middle and low-income families again, and again, and again.
“President Barack Obama's budget proposal would lead to significant tax increases on upper-income Americans,” the Wall Street Journal reported, “and also to moderate increases on some lower-income Americans.”
Those “moderate increases” on lower income Americans, however, become major increases on all wages earners when you look more deeply into who will actually be paying for a slew of new taxes proposed in the budget. The Tax Policy Center’s analysis only looks at direct taxes, failing to take into account the full economic impact of many of Obama’s tax change proposals.
Already reeling from the two percent payroll tax increase, with the result of savings rates plummeting, wage earners will see significant backdoor tax increases, making it more difficult to pay monthly expenses and save for things like, say, retirement.
For one thing, the government will change how it calculates the inflation rate. And you can be sure any time the government changes its statistical methods, it’s for the benefit of the government and no one else.
“Because tax brackets and other tax items are indexed to inflation,” Grover Norquist, head of Americans for Tax Reform, said, “slowing down their growth is an income taxincrease. This is a tax increase for all Americans who pay income tax, including middle class Americans.”
It’s also a tax increase for people who get Social Security income and veterans disability benefits.
Making it even more difficult for low-income Americans, the budget puts caps on the amount of private charity that can be deducted for tax purposes. The result will be less private aid for families who need it most.
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Thursday April 17th, 2014 | John Ransom
New Time 11:20 AM PT: Get the Market Movements in Advance: William's Edge Webinar for Wednesday April 16th, 2014 | John Ransom