During this election season we have all been subjected to Obama’s all out war on the rich; a distasteful strategy that pitted American against American and polarized an already divided Nation. The self-proclaimed protector of the middle class demanded that the “rich” pay their fair share so that the middle class could be saved. Based in large part on this divisive strategy Obama won re-election. But for those of you who actually bought into the false rhetoric coming out of 1600 Pennsylvania Avenue, the joke is on you!
Yes, the rich will be paying more in taxes, but frankly, folks making over $400,000 a year should pay more; they can afford it. However, it isn’t just the “rich” that will be paying more. The FICA tax rate, which is the combined social security tax rate of 6.2% and the Medicare tax rate of 1.45%, will be 7.65% for 2013 up to the social security wage base of $113,700, up from $110,100 in 2012. In 2011 and 2012 employees paid only 4.2% FICA due to a reduction in the payroll tax rate. Obama and his democratic supporters allowed the reduction in the payroll tax to expire over strong republican objection. As a result, all working folks regardless of income will experience an immediate 2% FICA tax increase. 2% does not sound like very much, but for folks making $113,700 that is $2425.20 MORE a year in FICA taxes. That is over $200.00 more a month in taxes for every working American! For most folks, especially those on a razor thin budget that is a lot of money. And the obamacare tax hasn't even kicked in yet.
Be forewarned however that this is just the beginning. If we do not demand transparency and truthfulness from the White House and Congress on the debt and deficit spending; if we do not DEMAND fiscal responsibility from our elected officials in Hartford and Washington D.C.; then working folks, all working folks, will all be paying a lot more in taxes in the future.
So, if you were one of the ones that believed the false rhetoric that only the "rich" were going to pay more in taxes, take a look at your paycheck and then reach out to Obama and your democratic representatives and thank them for "looking out" for the middle class.
Ralph J. Mancini