Deal or no deal, taxes are increasing for every single working American. And it appears no “fiscal cliff” proposal or provision being offered by the White House, Democrats, or Republicans will alter this fact.
The tax every working American will be hit with? The payroll tax increase.
“That means that the paychecks for more than 160 million Americans will be 2 percent smaller starting in January, as the payroll tax will jump from 4.2 percent to 6.2 percent. And a huge number of those hit will be middle class or working poor (Two-thirds of those in the bottom 20 percent would be affected by a payroll tax hike.),” describes the Washington Post.
The deal the Senate passed in late hours last night does not address the payroll tax hike. And no House member who has objected to the “fiscal cliff” bill has done so on the grounds of the payroll tax increase (instead, the objections are all based on how little the Senate bill cuts the bloated budget). The White House supports the already-passed Senate bill.