The Blog would like to provide a public service to all of his Republican/Conservative friends who have spent the last couple of days whining on Facebook about how the "fiscal cliff" deal is going to raise their taxes, while blaming Democrats (in general) and Obama (specifically).
This service may also be used by my Democrat/Liberal friends who are not on top of the story, but at least, don't get all of their "news" from Breitbart or Newsmax, to explain the situation to their friends and family who only get their "news" from those sources and others like them.
The Blog has stopped using Fox "News" as a "go to" right-wing propaganda outlet, because he has not found one single conservative, anywhere, who watches Fox. Not one!
"I don't watch Fox News," they all say. "I think for myself!"
Well, okay then. I will give them the benefit of the doubt and take them at their word.
But, when every "news" story they "share" on Facebook comes from Breitbart, Newsmax, WorldNetDaily, Townhall and other right-wing, internet propagandists, they cannot deny that all of that thinking that they do for themselves is informed by a narrow and incestuous source of misinformation.
Yes! You and I will be paying more in federal taxes next year (that's next year, mind you. Not this year.)
Let me break it down for you...
The PC is going to go to the wall here and assume that none of his conservative friends who are
That being the case, your federal income tax rate remains the same as it has since the Dubbya administration passed "temporary" cuts.
The only people who were willing to let those cuts expire this past Tuesday were Republican members of The House, who attempted to hold those cuts hostage to get what they wanted.
Which was, continued cuts for the top 2%.
"If the billionaires can't keep their cuts," they said, "ain't nobody keeping their cuts."
Because that is how much they really care about their middle class constituents.
Fortunately, the rather radical
Conclusion # One: No tax raise for you and me, there.
The estate tax has been raised. Substantially.
But, since the estate tax only benefits dead millionaires, it doesn't apply to us, as we are neither millionaires or dead.
Conclusion # Two: No tax raise for you and me, there.
So, let's move on to...
The Capital Gains Tax.
A few of The Blog's conservative friends (and some of his liberal friends) own investment properties and derive much of their income from them.
For whatever reason, the IRS does not consider this income "income." But rather, "capital gains."
The tax rates for capital gains are returning to the rates of the Clinton era. That would be the era when most of The Blog's friends thought that investing in property was a great idea.
When the Dubbya administration lowered those rates, investors partied like it was 1999. (It was actually more like 2002, but you get my point.)
Now that the rules have reverted to 1999 status, investors are crying like babies.
This whole thing baffles The Blog and brings to mind...
Oh! But, there is one other thing...
You see, you have to be pulling in that same, nearly half a mil per year, for the new Capital Gains rate to effect your taxes.
Again, The Blog assumes that his friends are not making that much money.
And if they are, then please! Quit yer cryin'. Strap on, pay your taxes like a patriot and enjoy the truckloads of money that are being dumped on your doorstep.
Conclusion # Three: No tax raise for you and me, there.
Which brings us to...
The Payroll Tax.
That's the tax that funds Social Security and Medicare.
Back in The Year of Our Lord, Two Thousand and Aught Eight, the newly elected, Democrat President Barack Hussein Obama put a cut of about 2% in our payroll taxes in his "Stimulus Package." He fought hard for it, and by some miracle, won it.
On the very day that the low information "Taxed Enough Already" astroturf
Wait for it....
Lowered our taxes.
Thanks to Republicans, that cut came with a "sunset clause." The cut was designed to expire on Jan. 1, 2013, to appease Republican congress members.
And, because Republican congress members refused to extend the payroll tax cuts, you and I will be paying about 1.7% more in payroll taxes in 2013 than we did in 2008, 09, 10, 11 and 12.
Slightly less than we were paying in 2007.
There are your "higher taxes" in a nutshell.
Here is The Blog's favorite headline on the subject...
Workers making $30,000 will take a bigger hit on their pay than those earning $500,000 under new fiscal deal
File this under, "No Shit, Sherlock!"
If you read the whole story and not just the headline, you will get it.
But, you aren't going to are you?
Once again, allow me to explain it to you.
Again, these are the taxes that fund Social Security and Medicare.
You know, the safety net programs that, one day, you and I will directly benefit from.
There is a cap on payroll tax contributions.
You and I and everyone else are only taxed on about $110,000 of our income.
Which means that those who make $30,000, $50,000 (the median American income,) $100,000 a year pay payroll taxes on 100% of our income.
Do the math.
A millionaire will only pay 10% to the same programs that they are as entitled to collect on as you and I are.