A Tax By Any Other Name...

 

Only the Most Affluent...

American households will pay higher income taxes this year.  Only about 0.7 percent of households will be subject to an income tax increase this year, according to the Tax Policy Center.

But...

 

77 percent of households will pay a larger share of income to the federal government, but don't get upset, it's not an income tax.  The payroll tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700. A household earning $50,000 in 2013, roughly the national median, will avoid paying about $1,000 more in income taxes — but pay about $1,000 more in payroll taxes. 

The Impact...

Economists estimate that the payroll tax increase will reduce disposable income by about $120 billion and shave half a percentage point from economic growth in the first quarter. Chain-store sales have weakened over the course of the month. And two surveys released last week suggested that consumer confidence was eroding, especially among lower-income Americans. 

Read the articles here and here, but remember what your government told you, only .7 percent of households will be subject to an income tax increase this year, and rest soundly, knowing that technically they are correct.

Hieronymus Bosch