Raise taxes on the wealthy. Cut spending on the poor and middle class. The battle rages on.
But there are some statistics that will clearly show why the “War against the Middle Class” has already been fought and the middle class lost big time!
Let’s start will the huge tax break the top 1-to-4 percent get on their paychecks that the other 96 percent of us don’t.
I’m talking payroll taxes, specifically the 6.2 percent Social Security tax (current 4.2 percent payroll tax holiday exempted) that is capped at around $110,000.
Because the wealthy are not required to pay any S.S. tax above that limit, their total tax rates drop dramatically as their incomes rise!
When added to the sweet 15 percent capital gains tax rate that so many of the 1 and 2 percent use to manipulate their tax rates below their cleaning staff, cooks and gardeners, the total loss in revenues to our government has been monstrous!
For example, those earning $250,000 see their overall S.S. tax rate drop to only 2.7 percent. Those earning a million dollar salary are paying a rate of only 0.7 percent.
Jump up to a $5 million income and their payroll tax rate is down to a mere 0.1 percent
You think these “well-to-do’ers” will forget about their S.S. checks at 65? Think again — there are around 2,400 millionaires collecting unemployment insurance today! There are even children of multi-millionaires collecting Social Security survivor benefits till they turn 18.
If we want economic growth and Social Security stabilized, we must end this war on the middle class!