On Jan 2 2013, based on a propaganda posted at whitehouse.gov, Obama explained to people on the new tax deal with the Republicans “…Under this law, more than 98 percent of Americans and 97 percent of small businesses will not see their income taxes go up…”
By now, most of you—yes, you who voted for Obama in November 2012—have probably received your first pay check of 2013 by now.
And all of you—yes, still you who voted for Obama in November 2012—have realized your pay checks have gone down.
And many of you—yes, still you who voted for Obama in November 2012—would be surprised.
And how I wish I could see the expressions on your faces—yes, the faces of Obama voters who have just found out your Obama raised your tax in 2013.
(By the way, most of us who did not vote for Obama believed he would need to raise tax on everyone to support his spending)
Payroll Tax Cut
In 2009, newly elected President Obama announced he wanted to reduce the payroll tax rate from 6.2% to 4.2%. Technically, this is more like a tax holiday than a tax cut since it’s not permanent. However, Obama called it a tax cut as he put it “…Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans…”
I’ve always preferred the government to cut my federal income tax rate by 2% instead of robbing the Social Security Trust Fund by 2%. An estimate of this 2% payroll tax cut put the cost of over $110 billion to Social Security Trust Fund in 2011. In 2013, it would have been over $125 billion.
Obama raised more tax on the lower and middle class than the rich
While it’s true that Obama carried out his promise to make the rich pay more in tax, but he ended up raising more tax on the middle class. In 2013, Obama’s higher tax rate of 39.6% on the top 1% will bring in an additional of about $39.5 billion while the lower and middle class will end up paying a total of more than $100 billion this year—based on an estimate by JPMorgan.
And most of you—yes, still you who voted for Obama in November 2012—who are in the tax brackets of 10%, 15%, 25% should remember that these low tax rates were given by President George W. Bush. Not Barack Obama.