White House Thinks Supporters Are Clueless About Their Pay —– Pretends Their Taxes Didn’t Go Up


From Townhall

Despite Americans seeing a two percent jump in their Social Security taxes and less money in their bank accounts after the fiscal cliff deal was signed via auto pen on behalf of President Obama last week, the White House is pretending rates stayed the same. In an email to supporters yesterday, White House Senior Adviser David Plouffe wrote:

Hello —
I’ll tell you what keeps driving me every day: the knowledge that people like you have our backs.
When President Obama asked you to make your voices heard to keep taxes from going up on the middle class, people from all over the country, folks in every state spoke out. More than 130,000 of you sent in stories to the White House website. There were times these past few weeks when our Twitter feeds were positively overwhelmed by people joining the debate using the #My2k hashtag.
So we put your stories on the front page of the White House website. We asked you to stand behind the President when he laid out his position on this debate at the White House. The President went and met with one family who had shared their story. The Vice President sat down with another for lunch.
And people took notice. Reporters wrote stories about the way that you were adding your voices to this debate, and it became impossible to ignore your perspective.

It’s too late.  Some clueless Dem creature had already received a paycheck and noticed it was less than in 2012.  So, she asked why.  She’s since deleted the original question because of the hubbub, but, you can see the comments.  Some are delicious. 

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9 Responses to White House Thinks Supporters Are Clueless About Their Pay —– Pretends Their Taxes Didn’t Go Up

  1. philjourdan says:

    While I NEVER patronize the HuffPo (My intense aversion to slavery), I do sometimes meander over to du dot org. To see how the demented live.

    Delicious is probably too soft a term. But they are something!

  2. cdquarles says:

    Strictly speaking, POTUS is correct. FICA is two parts: 6.25% paid by the employer for the employee (and comes out of his pay, though it isn’t in the top line) and 6.25% paid by the employee and sent by the employer for the employee, shown as FICA in the stub. The withholding was temporarily reduced by 2 points, but the statutory rate didn’t change only the required withholding. The temporary 2 point reduction in the required withholding expired. The real due rate never changed. (Medicare taxes work in this manner as well as the Disability Insurance taxes, but unemployment taxes don’t. Those come out of the pay packet invisibly and never get shown on the stub top line.)

    • cdquarles says:

      How so I know this? Well, if the real due rate had been reduced, then the wage credit would have also been reduced and the future SS payment estimate would have been reduced. None of that happened, meaning the wage credit remained based upon the 13.5% statutory rate, not 11.5%, even though the actual revenue collected did reflect the nominal rate * nominal wages, and reduced the SS ‘surplus’ accordingly; making the ‘SS bankruptcy’ date move up a couple of years.

    • HankH says:

      Lets not forget the 7.5% adjusted gross income floor on medical expenses deductions raised to 10%. That will hit the pocketbook of people who needed medical care. Then there’s the lowered limit on what taxpayers can deposit into FSAs to $2,500 per year. This hits families with disabled children and the self-insured hard.

      Then there’s all the indirect taxes passed on to the taxpayer like the 2.3% excise tax on medical devices, the elimination of deductions for for prescription expenses for retirees, increased fees on insured and self-insured health plans, increased fees on health care providers, and increased taxes on insurance companies. Then there’s the myriad new fees on goods and services that will be passed on to the consumer.

      Technically none of this comes out of the individual’s pay check so POTUS can spin this as he has. However it is either directly or indirectly paid by the middle class in goods and services pass-though and in higher taxes owed on tax day. All told, I estimate that the average Joe will see 2% – 6% less spendable income for the same take home pay, all of which trickles into the government coffers.

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