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$449,999 A Year Is The New Middle Class

It’s the law:

The House of Representatives voted Tuesday night to approve a Senate bill to avert a feared fiscal cliff.

The measure that sought to maintain tax cuts for most Americans but increase rates on the wealthy passed the Democratic-led Senate overwhelmingly early in the day…

The legislation would raise roughly $600 billion in new revenues over 10 years, according to various estimates

Despite the median income for most American households being roughly $50,000, the top tax rate for households subject to the 39.6% rate is cut off at $450,000 while the median income for most individual Americans is roughly $26,000, the top tax rate for individuals subject to the 39.6% rate is cut off at $400,000. Just keep saying shared sacrifice (over and over again).

Most of the Bush tax cuts were made permanent and the payroll tax cut holiday was allowed to expire raising taxes immediately on workers. Left out was the carried interest loophole:

The top rate for dividends and capital gains starts at the $400k/$450k level.  Note:  this increase is in addition to the 3.8% add-on tax for capital gains and dividends included in the health bill.  In addition, nothing done specifically on carried interest.

America will remain a distorted society with severe inequality, and we haven’t even gotten to the spending cuts yet. Hello debt ceiling.

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Dan Wright

Dan Wright

Daniel Wright is a longtime blogger and currently writes for Shadowproof. He lives in New Jersey, by choice.