Saturday, August 10, 2013
New higher tax rate for 2013
Starting in 2013 there is a new highest tax rate. It is now 39.6% instead of the 35% that was in effect for tax year 2012. According to my calculations that is greater than a 13% from one to the other. My opinion is that the increase is rather high when you look at other metrics that the government looks at when quantifying the cost of living increase in social security calculations. They use the consumer price index(CPI) and that was around 2% in 2012. So they can increase there "income rate" by 13% when on the other hand they can justify a 2% increase to our seniors. By the way I love how they calculate the CPI when they leave out groceries and gas. Especially when food costs have been increasing quite a lot.
Now granted the 39.6% rate does not kick in until your taxable income reaches $400,000 for a single person and $450,000 if filing married jointly. However that is just federal income tax which does not include wage earners 7.65% and more because of the surtax of 0.9% as you pass $200,000 in wages. So all in all your looking at about half of your income taken away.
What do you have to show for all of this money going in taxes? A government that is 17 trillion in debt and an entitlement system that is going broke. So my question is, why?
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