How many of you have had a similar experience this week?
As I looked at my first paycheck of the year last week, I noticed that my paycheck was noticeably lower than the prior one. I thought, "hmmm, that is odd. I should not have had a tax increase". I wondered what was behind Uncle Sam taking more money form me. Let me tell you what happened.
First, let me assure you I do not qualify for the much publicized and highly debated tax increase for those making over $400,000 annually. I don't come close to that threshold. No, apparently my paycheck was victim to tax increases that went into effect on Jan. 1st. A tax increase that EVERY American on payroll was subjected to. This payroll tax increase was completely ignored by both political parties.
Always remember, today's nice gesture is tomorrow's
entitlement. Two years ago, the current administration cut the payroll tax by roughly 30%. This tax cut took funding away from social security and medicare.
At the time the tax cut was proposed, it seemed like a bad idea to cut funding to social security because it was and still is so
under funded. However, the short sighted vision of our leaders and our collective constituency lobbied for the cuts and they were signed into law. After two years, the extra money became more than a temporary bonus but became expected.
Now
that they are taking the tax break away, America is up in arms. The payroll tax is increasing by almost 50% (from 4.2% to 6.2%). A household making $50,000 will most likely see an increase of $1,000 in their tax bill. Illustrating my claim that yesterday's
nice gesture became today's entitlement.
In an unnoticed irony, Barack Obama campaigned on not
raising taxes on the middle class. By allowing his tax cut to expire, he raised
taxes on EVERY SINGLE American who earns a paycheck.
