!!! MIDDLE CLASS TAXES LOWEST IN 50 YEARS !!!

[SmileyRose]

So is our buying power..............



http://www.cbpp.org/cms/index.cfm?fa=view&id=3151&emailView=1

Middle-income Americans are now paying federal taxes at or near historically low levels, according to the latest available data. That’s true whether it comes to their federal income taxes or their total federal taxes.

* Income taxes: A family of four in the exact middle of the income spectrum will pay only 4.6 percent of its income in federal income taxes this year, according to a new analysis by the Urban Institute-Brookings Institution Tax Policy Center. This is the second-lowest percentage in the past 50 years.


http://motherjones.com/kevin-drum/2010/01/vicious-cycle-stagnant-wages

For the past couple of decades, the benefits of economic growth have gone almost entirely to the rich. But the middle class still wanted to prosper, so the rich loaned them money to continually improve their lifestyles. That worked for a while. And then it didn't.

[exboyfil]

1. Mostly driven by th $1,000/kid

child tax credit. I think the cut line for zero taxes using a standard deduction is around $45K now. Still at $45K you and your employer have contributed over $6K to Social Secuity/Medicare.

[MannyGoldstein]

2. Not If You Count Social Security/Medicare Fairly

These are not called taxes, but they are actually treated as taxes. This adds another 15% or so to the Middle Class's tax burden.

[exboyfil]

3. True but their is a positive payback on

Social Security for income less than about $35-40K (it is subsidized by those making more than that amount). Medicare amounts to a positive payback for everyone. I guess if you view that everyone is entitled to the minimum income guarantee irrespective of contributions to society, then it is a burden - but Social Security as an investment vehicle for low earners is better than anything that you can do in the open market (price an inflation indexed annuity sometime).

A family of four could earn $53K last year and not pay a dime in Federal income taxes (assuming a standard deduction, the Child Tax Credit, and the Making Work pay tax credit).

The thing that should make everyone nervous is the talk about Social Security being insolvent. It is not insolvent, there is still plenty of money in the Trust Fund (which I have contributed to my entire working life since 1985 when I came out of school).

[marmar]

4. Personally, I don't think low taxes are a good thing.....

....I'd rather pay more and get more back.

[underpants]

5. This is THE selling point for the re-election, and good economic sense

putting spending money back in the pockets of the American middle class will spur not only our economy but the world economy

the middle gets this so do the older people.