Just how true is the statement that the taxes for the middle class will not be raised? —They will only tax the rich? Believe that and buy the Brooklyn bridge while your at it.
If we examine your pay check stub, you will see the full amount paid to you with the Federal and state taxes deducted. Notice that there are other deductions, that are called payroll taxes for Social Security and Medicare. Technically you get them back some time way in the future, so they are not really taxes. The employee pays 6.2 percent Social Security tax and also a 1.45 percent Medicare tax which ad up to a total of 7.65 percent. And naturally your employer matches those amounts. In reality, the employee pays the full 14.3 percent, the employer anticipates this as part of your salary before he even hires you.
It sounds great that the employer pays half, but if you think about it, wages are a business expense. When you look at your paystub, you see Social Security and Medicare deductions at 7.65 percent. You’d look at your paystub a little different if it reflected 14.3 percent in payroll deductions.
If the administration decides to raise Social Security and Medicare rates, they can do it and this is not considered raising your taxes. It is only deducted from the first 127K of earnings. I would guess that people earning more than 127K a year have progressed beyond the middle class.
So if you are like me, with all of my 401k deductions to reduce my taxes, I still get hit with 20% income tax. Add on to that the 14.3 percent for SS and Medicare, and we arrive at about 35 percent of my paycheck is eaten up by government deductions and income tax.
Let’s throw in some health insurance, my employer contributes $11,000 a year and I contribute $5,000. I’m not even sick and if I was to get coverage privately, it would be rather pricey. Now if your employer doesn’t offer insurance, guess what? You now have to purchase it on your own by law. Ask yourself one question, are health insurance premiums in the private sector based on how much you earn, or are they the same for everyone? And the government has a plan for you called Obamacare. If you are too poor to afford insurance, you get full coverage. If you make some decent wages, you can only afford the plans with the high deductible that render them worthless.
Now a couple of weeks before the election, the state insurance boards are announcing new increases in rates for insurers in the following states because of Obamacare. Here are a few of them; Tennessee: 44% to 62%, Pennsylvania: 33%, Oklahoma: 76%, Nebraska: 35%, Minnesota: 50% to 67%, Illinois: 44%, Georgia: 32%, Alabama: 36%, Colorado: 20% and Iowa: 43%.
So let me get this straight, employers don’t have to pay health insurance for workers working under 30 hours. And by God they deserve $15 dollars and hour. So, you end up working two jobs to get 40 hours and are forced to purchase government health care insurance at your own expense.
How do you raise taxes on the middle class when you move them to a lower class? Donald Trump can end some of this miss direction on the middle class by getting rid of Obamacare. Raising the minimum wage just insures that corporations move overseas. The minimum wage has never been a wage to elevate people above the poverty level; It has been an entry level wage for employers to train new employees.
Where too from here? I hope we end up with Donald Trump as President. He isn’t a politician, and this is what has Washington DC worried. IMHO he is what the country needs to get back into the groove of being a major power. Obama was nothing more than a tourist with an unlimited expense account for visiting foreign countries. The era of “ Obama the tourist,” needs to be retired.
Normally this blog doesn't take political positions and I don't apologize for not being politically correct. But I feel it necessary to take a stand. The news organizations of this country have selectively decided to hide "The Great Depression" that we are in, and sugar coat the present economic conditions to sway the election.