The two percent tax increase that's coming because you didn't say 'thanks'
Tax cut expiring because nobody seems to have noticed it.
A stealthy tax increase is about to cut your pay by 2 percent as of January , 2013. Technically, the politicos say, it's not a tax increase, but rather the expiration of a tax cut, but with neither party willing to do anything about it, if will feel like an increase to you.
However, politicians say the cut, which averages about $20 per week for the average worker, is unlikely to be noticed by taxpayers, so it isn't politically cost effective.
In other words, because you're unlikely to notice the cut and thank your local politician for it, they're happy to make you start paying it again.
Despite the consensus to allow the cut to expire, at least two entities have come out in favor of collecting your money, Paul Ryan and AARP. Ryan referred to the cut as "sugar high economics" when it was proposed. While AARP says Social Security needs the revenue.
To be fair, the cut came with a government pledge to replace the money due to social security, but that money was never cut from elsewhere meaning the government had to borrow the difference and add to the national debt to keep the payments flowing into the social security fund.
Republicans wanted to see the tax cut expire a year ago, while Democrats fought to keep it for
another year. However, with the elections near and neither side feeling like they're benefiting politically from the issue, everyone in Congress seems happy to let the cut expire.
Ultimately, the cost to you, the taxpayer, is a two percent reduction in your take-home pay, or as stated previously, about the cost of a tank of gas every month for the average worker. Another way to look at it is to imagine the cost of gas doubling in price as of January 1st.
Of course, you could probably bet that would get a lot of attention.
© 2012, Distributed by NEWS CONSORTIUM.
Pope Francis Prayer Intentions for December 2013
General Intention: Victimized Children. That children who are victims of abandonment or violence may find the love and protection they need.
Missionary Intention: Prepare the Savior's Coming. That Christians, enlightened by the Word incarnate, may prepare humanity for the Savior's coming.
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