Then there is the Federal Social Security and Medicare payroll tax of 13.3%. You pick up 5.65% while you’re employer pays 7.65%. Add them up and that’s 38.3% of middle class family incomes going to Uncle Sam. But we aren’t done, not by a long shot.
According to the Tax Foundation, the average state’s income tax rate on the middle class is 4.82%. Of course, some states have it and some don’t, but we’re taking an average here.
Now the total: 43.12% of middle class income to taxes.
Oh, and I almost forgot, unless congress makes a move, Federal Income taxes go to 28% for middle income folks next year as the Bush tax cuts expire.
Neither party has said they want that to happen, but in Washington, well, you never know.
Also the payroll tax for those folks will go to 15.3% from 13.3%percent.
But start adding up all the other taxes. Property (and renters don’t seem to understand that they pay those taxes as part of their rent). Taxes on virtually everything you buy. Gas taxes. Excise taxes. Government fees. Energy taxes. Phone taxes.
Start keeping track and it’s a lot of money going out.
Then add the costs of energy – that will be skyrocketing. Food is going up – rapidly. You pay more for everything as gas and diesel prices soar.
I really don’t think people realize just how bad this is going to get – very soon.