The Senate has approved a tax deal to blunt some of the impact of the Fiscal Cliff.There’s some great news for the investor and owner class in there:
Dividend taxes won’t go up anywhere near as much as they would have with no deal.
And income taxes will only rise for households making a healthy $450,000 or more–and, even then, not very much (just back to the Clinton-era 39.6%).
And there’s other excellent news for those who regard America as a land of “makers” and “takers.”
Congress just socked it to Mitt Romney’s famous 47%.
Remember “the 47%”?
They’re the Americans who Republican presidential nominee Mitt Romney said “don’t take responsibility for themselves,” because they make too little money to pay income taxes.
(How dare they not make enough money to pay income taxes! How irresponsible and rude!)
Of course, as many appalled Americans pointed out in the wake of Romney’s remarks, most of these folks are either seniors collecting Social Security or working Americans who make less than ~$50,000 a year. And most of the latter folks pay payroll taxes and other taxes, like sales taxes.
But these folks are still held in low regard by those who consider themselves America’s makers.
So there’s great news for these folks tucked into the Senate bill:
By not extending the payroll tax cuts, the Senate agreed to raise payroll taxes on working Americans from 4.2% to 6.2%–a tax that will apply to the first $113,000 of earned income.
This tax increase will hit anyone who earns money in this country, including “the 47%.”
So, it’s almost like Romney got elected!
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