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Obama made a mistake giving Americans the SS tax rate Holiday.

Posted by on Jan. 2, 2013 at 12:00 PM
  • 11 Replies

 He has once again (and everyone will know it this time) raised your taxes. Mr. "I will never raise your taxes, not one dime." has just raised your taxes.   Maybe you were one of those who forgot you were getting a 2% discount on your SS taxes.  Here is a reminder.

WASHINGTON (AP) — While the tax package that Congress passed New Year's Day will protect 99 percent of Americans from an income tax increase, most of them will still end up paying more federal taxes in 2013.

That's because the legislation did nothing to prevent a temporary reduction in the Social Security payroll tax from expiring. In 2012, that 2-percentage-point cut in the payroll tax was worth about $1,000 to a worker making $50,000 a year.

The Tax Policy Center, a nonpartisan Washington research group, estimates that 77 percent of American households will face higher federal taxes in 2013 under the agreement negotiated between President Barack Obama and Senate Republicans. High-income families will feel the biggest tax increases, but many middle- and low-income families will pay higher taxes too.

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

"For most people, it's just the payroll tax," said Roberton Williams, a senior fellow at the Tax Policy Center.

The tax increases could be a lot higher. A huge package of tax cuts first enacted under President George W. Bush was scheduled to expire Tuesday as part of the "fiscal cliff." The Bush-era tax cuts lowered taxes for families at every income level, reduced investment taxes and the estate tax, and enhanced a number of tax credits, including a $1,000-per-child credit.

The package passed Tuesday by the Senate and House extends most the Bush-era tax cuts for individuals making less than $400,000 and married couples making less than $450,000.

Obama said the deal "protects 98 percent of Americans and 97 percent of small business owners from a middle-class tax hike. While neither Democrats nor Republicans got everything they wanted, this agreement is the right thing to do for our country."

The income threshold covers more than 99 percent of all households, exceeding Obama's claim, according to the Tax Policy Center. However, the increase in payroll taxes will hit nearly every wage earner.

Social Security is financed by a 12.4 percent tax on wages up to $113,700, with employers paying half and workers paying the other half. Obama and Congress reduced the share paid by workers from 6.2 percent to 4.2 percent for 2011 and 2012, saving a typical family about $1,000 a year.

Obama pushed hard to enact the payroll tax cut for 2011 and to extend it through 2012. But it was never fully embraced by either party, and this time around, there was general agreement to let it expire.

The new tax package would increase the income tax rate from 35 percent to 39.6 percent on income above $400,000 for individuals and $450,000 for married couples. Investment taxes would increase for people who fall in the new top tax bracket.

High-income families will also pay higher taxes this year as part of Obama's 2010 health care law. As part of that law, a new 3.8 percent tax is being imposed on investment income for individuals making more than $200,000 a year and couples making more than $250,000.

Together, the new tax package and Obama's health care law will produce significant tax increases for many high-income families.

For 2013, households making between $500,000 and $1 million would get an average tax increase of $14,812, according to the Tax Policy Center analysis. Households making more than $1 million would get an average tax increase of $170,341.

"If you're rich, you're almost certain to get a big tax increase," Williams said.

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by on Jan. 2, 2013 at 12:00 PM
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Replies (1-10):
Mommy_of_Riley
by Just Jess on Jan. 2, 2013 at 12:02 PM
I don't know how many times I can repeat this....

THESE ARE NOT TAX INCREASES.
THEY WERE SET TO EXPIRE.

We are going back to our original taxes and rates. It's not an increase.
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itsmesteph11
by on Jan. 2, 2013 at 12:24 PM
1 mom liked this

 LOL  Call it what you want. Lie to yourself if it makes you feel better. YOUR  and everyone elses (who has a job) taxes  are going up.  Obama promised never to raise the middle classes taxes "not one dime".

  The Bush Tax cuts have always been scheduled to end but they were extended and were scheduled to end again.  Libs found no problem in saying if we didn't do something taxes would go up for millions.  They were blaming Republicans for wanting to raise taxes on Americans.   Hmmmmm  Guess all we had to say was they were scheduled to end anyway?  LOL

Quoting Mommy_of_Riley:

I don't know how many times I can repeat this....

THESE ARE NOT TAX INCREASES.
THEY WERE SET TO EXPIRE.

We are going back to our original taxes and rates. It's not an increase.

 

Mommy_of_Riley
by Just Jess on Jan. 2, 2013 at 12:28 PM
1 mom liked this
It's not lying when its the truth. We're you working before Bush passed all of the tax cuts? If so then you will just be paying what you were then. It's really that simple.

The Bush Tax Cuts were temporary and should have expired long ago. Let them expire like they were meant to. I'm fine having my taxes go back to the old rate.


Quoting itsmesteph11:

 LOL  Call it what you want. Lie to yourself if it makes you feel better. YOUR  and everyone elses (who has a job) taxes  are going up.  Obama promised never to raise the middle classes taxes "not one dime".


  The Bush Tax cuts have always been scheduled to end but they were extended and were scheduled to end again.  Libs found no problem in saying if we didn't do something taxes would go up for millions.  They were blaming Republicans for wanting to raise taxes on Americans.   Hmmmmm  Guess all we had to say was they were scheduled to end anyway?  LOL


Quoting Mommy_of_Riley:

I don't know how many times I can repeat this....

THESE ARE NOT TAX INCREASES.
THEY WERE SET TO EXPIRE.

We are going back to our original taxes and rates. It's not an increase.

 

Posted on CafeMom Mobile
rocketracer
by Gold Member on Jan. 2, 2013 at 12:30 PM

My taxes have been raise via the ACA.....I can only contribute a max of $2500, rather than $5000, to my FSA account.  I know this doesn't have anything to do with the SS tax, but it's just one example of how my taxes are going up.

itsmesteph11
by on Jan. 2, 2013 at 12:40 PM

 That's so for everyone. You are exactly right.  I didn't refer to the healthcare act because most of those are nto direct tax increases and are not visible to people until they get hit. There are plenty of things in Obama care that will cost us all more money. 

Quoting rocketracer:

My taxes have been raise via the ACA.....I can only contribute a max of $2500, rather than $5000, to my FSA account.  I know this doesn't have anything to do with the SS tax, but it's just one example of how my taxes are going up.

 

Analeigh2012
by Silver Member on Jan. 2, 2013 at 12:45 PM
I am going to continue to say my taxes are being raised, whether you want to look at it that way or not. Here is why - I was working before Bush reduced taxes. I earned, on average, $40,000. I was single. Over time I have married and received promotions with pay increases. Now as a household, we earn well over $200,000 but not above $400,000. These "expirations" will NOT take me back to the tax level I was paying because I earn a heck of a lot more now. My taxes on my earnings WILL go up, thankfully not to the highest degree. Same could be said for young workers who never paid the rates before the Bush cuts. Only those people who have remained in the same income bracket over the past 8-10 years will see the same rates. This is why it is upsetting to me and people I know.

Quoting Mommy_of_Riley:

It's not lying when its the truth. We're you working before Bush passed all of the tax cuts? If so then you will just be paying what you were then. It's really that simple.



The Bush Tax Cuts were temporary and should have expired long ago. Let them expire like they were meant to. I'm fine having my taxes go back to the old rate.




Quoting itsmesteph11:

 LOL  Call it what you want. Lie to yourself if it makes you feel better. YOUR  and everyone elses (who has a job) taxes  are going up.  Obama promised never to raise the middle classes taxes "not one dime".



  The Bush Tax cuts have always been scheduled to end but they were extended and were scheduled to end again.  Libs found no problem in saying if we didn't do something taxes would go up for millions.  They were blaming Republicans for wanting to raise taxes on Americans.   Hmmmmm  Guess all we had to say was they were scheduled to end anyway?  LOL



Quoting Mommy_of_Riley:

I don't know how many times I can repeat this....

THESE ARE NOT TAX INCREASES.
THEY WERE SET TO EXPIRE.

We are going back to our original taxes and rates. It's not an increase.


 

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sweet-a-kins
by Ruby Member on Jan. 2, 2013 at 5:06 PM

 They are too stupid to understand this....

 

Quoting Mommy_of_Riley:

I don't know how many times I can repeat this....

THESE ARE NOT TAX INCREASES.
THEY WERE SET TO EXPIRE.

We are going back to our original taxes and rates. It's not an increase.

 

Ednarooni160
by Eds on Jan. 2, 2013 at 5:20 PM

Households making between $40,000 and $50,000 will face an average tax increase of $579 in 2013, according to the Tax Policy Center's analysis. Households making between $50,000 and $75,000 will face an average tax increase of $822.

Mommy_of_Riley
by Just Jess on Jan. 2, 2013 at 5:31 PM
Yes now this is a whole different story... This "Act" will cause more taxes and changes for all Americans...

Quoting rocketracer:

My taxes have been raise via the ACA.....I can only contribute a max of $2500, rather than $5000, to my FSA account.  I know this doesn't have anything to do with the SS tax, but it's just one example of how my taxes are going up.

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sweet-a-kins
by Ruby Member on Jan. 2, 2013 at 5:36 PM

 He made so many mistakes he was elected and re-elected with a MANDATE..

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