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Monday, February 14, 2011

"United Against the Working Poor"

David Cay Johnston:

Obama and the GOP: United Against the Working Poor, by David Cay Johnston: Who says bipartisanship is dead?
On Capitol Hill, the Democrats and Republicans may no longer play cards and drink together, but that does not seem to stop them from working together to shift tax burdens down the income ladder even when it violates their promises on the campaign trail. ...
The tax compromise passed in December has been hailed everywhere as a payroll tax cut combined with an extension of the Bush tax cuts, despite the fact that it raised taxes on a third of Americans. The killing of Obama's Making Work Pay tax credit, which the White House called the biggest middle-income tax cut ever, and the replacement of it with the Republicans' payroll tax cut raised taxes on single workers whose wages come to $20,000 or less and married couples with less than $40,000 in wages. That's 51 million taxpayers...
While two-thirds of the poorest Americans -- the ones getting by on less than $1,500 a month -- face a tax increase, the share of people hit with tax increases falls off quickly as you move up the income stepladder. ...[continue reading]...

    Posted by on Monday, February 14, 2011 at 10:11 AM in Economics, Income Distribution, Taxes | Permalink  Comments (35)


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