Wednesday, December 15, 2010

Poor Will Pay More

Why is it that the poor have to pay more and the rich have to pay less?

In 2009 and 2010 lower income people were eligible for a "Making Work Pay Tax Credit".  It provided a tax credit of up to $400 per person and $800 per couple.  So what happened to it?  It has been replaced by a "temporary" 2% reduction in Social Security withholding.

So, what's so bad about that?

Making Work Pay gives the most help to those that need it the most.  SS withholding reduction gives help to those that need it the least.  Once again the higher wage earner wins out over the lower wage earner.

David Dayden over at FDL shows a chart by Nancy Altman of Social Security Works that compares the two programs.  Here is the chart.

Again, we see things weighted to the top while the people who need the help are at the bottom.

The 2% reduction in SS withholding is being touted as a benefit for the poor.  Where is the benefit?  People making under $20,000 per year will get an effective tax INCREASE, while people earning over $106,800 will get an additional $2136 per year.  

For republicans, this is normal.  For Democrats, this is disgrace. 


  1. whats wrong with people?? This bill is disgraceful and the Obama supporters are ignoring the facts. It could have been very simply a bill to extend the middleclass tax cuts and unemployment, but it has turned into a monster!

  2. But God help anyone who were to criticize Obama. I think Obama is worse than Bush. We knew what we had with Bush,with Obama were dieing by way of paper cuts. Jerry if you don't mind may I borrow this graph..

  3. The answer is to cut taxes on everyone.

    Yes, Obama is worse than Bush. He has resisted keeping the tax cuts for everyone, even though he did give in eventually.

  4. Actually it is just easier to give the money directly to the pockets where all of it is going to end up anyway....

    Remember, Obama has never called this "job creation" he has always been very careful in referring to this tax cut as 'stimulating economic activity and growth...."

  5. Tim,
    You are very welcome to the graph. I meant to link to the article where I got it. Here is the link to David Dayen's article over at FireDogLake.


  7. I still think the Dim's should of let those fucking tax cuts expire. A game of chicken? Yes, but it would of put the onus on the assholes on the right that will control the House.

  8. I agree with Hell's Most Vocal, yet sweet, lady.

    I refuse to say or use the "N" word in any context. I endeavor to not use the "B" word as much as possible.