We aren't just talking about raising taxes on the wealthiest Americans anymore, are we? As of January 1st, tax rates will increase for almost all Americans, with the middle class the hardest hit, comparatively speaking.
WASHINGTON (AP) - A typical middle-income family making $40,000 to $64,000 a year could see its taxes go up by $2,000 next year if lawmakers fail to renew a lengthy roster of tax cuts set to expire at the end of the year, according to a new report Monday
Taxpayers across the income spectrum would be hit with large tax hikes, the Tax Policy Center said in its study, with households in the top 1 percent income range seeing an average tax increase of more than $120,000, while a family making between $110,000 to $140,000 could see a tax hike in the $6,000 range.
Taxpayers across the income spectrum will get slammed with increases totaling more than $500 billion - a more than 20 percent increase - with nine out of 10 households being affected by the expiration of tax cuts enacted under both President Barack Obama and his predecessor, George W. Bush.
They have called the "Bush Tax Cuts" temporary, but they have been in place for over a decade. Since most Americans only have around four decades of work to look forward to, there has been nothing temporary about these tax cuts. It is the world we know and have budgeted for. Raising taxes by this level on January 1st would hurt the middle class is a particularly hard way and would really affect their buying power, hurting a fragile economy even more. I understand that the Federal Government wants more money, but perhaps we should look at entitlement reform, pulling back from the wars-with-no-end that we are fighting, and putting more people to work. There are solutions to be had if we would work to do the things that make sense.