- ‘Optionally piloted’ Black Hawk helicopter clears tests; future missions to go ‘fully unmanned’
- Vice News reporter kidnapped in Ukraine is freed after being beaten, blindfolded
- FCC’s new ‘net neutrality’ proposal sparks outrage among consumer advocates
- Families of ferry’s lost confront South Korean officials
- 2-week truce for Sriracha hot sauce maker, California city
- NYC’s de Blasio seeks to ban wood-burning fireplaces
- Residents angry Obama mispronounced town’s name during mudslide visit
- Israel halts peace talks with Palestinians
- Netanyahu’s driver accused of raping girls under age 12
- Putin calls Internet ‘CIA project’ that must be controlled
LETTER TO THE EDITOR: Congress’ fake tax cut
The analysis of the tax “deal” arrived at by Congress this week omitted a couple of important points (“‘Fiscal cliff’ deal ignores the real problem,” Commentary, Thursday).
First, for Americans earning less than $400,000 per year (single) or $450,000 annually (household), income tax withholding will stay where it is. Most people assume a tax rate cut means they will pay less in taxes, but this cut merely continues a rate reduction already in place. That is bound to disappoint many taxpayers when they get their first paychecks of 2013.
More important, the Senate agreement allows the payroll tax for Social Security to go back up to 6.2 percent (plus 1.45 percent for Medicare). This means the total amount withheld from workers’ paychecks will increase and their take-home pay will be correspondingly reduced. Most taxpayers don’t differentiate between income taxes and FICA — it’s what they are paid after all deductions that matters.
It is bad enough that Congress is congratulating itself for preventing a tax increase while imposing a FICA tax increase for all Americans. The confusion is compounded when the media don’t tell us that this is part of the “deal.”
© Copyright 2014 The Washington Times, LLC. Click here for reprint permission.
TWT Video Picks
By Andrew P. Napolitano
Obama's veil of secrecy is pierced
Get Breaking Alerts
- In its hunt for Senate, Republican candidates campaign against Harry Reid
- Obamacare class-action suit opens a new legal front
- 'Top Gun' for drones: Squadrons of carrier-based killers have Navy's approval
- List Hillary Clinton's successes? State Dept. spokeswoman flubs answer
- Nevada rancher Cliven Bundy hailed as patriot, ripped as lawless deadbeat
- 'Conservatives' should feel exposed by Bundy's racist comments: Scarborough
- America is an oligarchy, not a democracy or republic, university study finds
- Sold out: Ukraine's leadership swapped best military weapons for cash
- Texas is next! AG warns BLM wants 90,000 acres after Bundy ranch standoff
- Opposition rising to Colorado gun control laws