Time to cut taxes, Democrats. Here are some federal income taxes on the middle class that have gone up and contributed to a declining standard of living.
….over the past forty or sixty years is that taxes on lower incomes have increased. The payroll tax was 3% in 1960, or 6% if you consider both the employer and employee portions. Today, it is 6.2%, or 15.3% taking both sides and also considering Medicare. That’s a big increase.
Sales taxes have risen from an average of 7.0% in 1983 to 9.6% in 2010. Unfortunately, the data becomes murkier going farther back, but it appears that this trend higher in sales taxes has been taking place since the 1950s.
Also, the basic exemption has been driven lower and lower, mostly due to inflationary “bracket creep.” In 1950, a married couple was exempt on its first $1,200 of income. That might not sound like much, but in 1950, per-capita income was about $1,510. In 2010, per-capita income was $40,584, and a married couple was exempt on only the first $11,400 of it.
Overall, we’ve seen a gradual increase in the tax rates on the first $50,0000 of income. Today, for a family of four that makes over $36,900 — not exactly a high hurdle — you’ll be paying 15% on marginal income, plus 15.3% in payroll taxes (directly or indirectly), plus about 10% in sales taxes, plus additional state-level and possibly city-level income taxes, plus property taxes (directly or indirectly), plus additional fees and taxes on your phone, gasoline, and whatnot. A single taxpayer hits this level at $14,650. That is, in my opinion, much too heavy a burden at this income level.
Who destroyed the middle class?
by Nathan Lewis