Tags: middle | class | income | taxes

Average Middle-Class Family Already Loses Nearly 30% of Income to Taxes

By    |   Wednesday, 05 Dec 2012 07:41 AM

Everyone in Washington seems to agree that taxes for the middle class should not go up. The central debate seems to be how to define the middle class and how much more the rich should pay. No one seems concerned with how much the middle class is already paying.

Federal taxes cost the average household about 17.4 percent of their income. State sales and income taxes add about 6.5 percent to that burden. Property taxes vary by city but average another 3.5 percent of annual income, according to the Tax Foundation, and gasoline taxes take another 1 percent of income from the average family.

These expenses add up and average families are giving about 28.4 percent of their income to the government. When payroll taxes rise at the end of the year as expected, that amount will top 30 percent.

Healthcare insurance will soon be mandatory and Chief Justice John Roberts has explained to the country that this expense should be considered a tax. Details will be announced soon, but this tax will decrease a family’s discretionary income by 2 to 6 percent.

In 2014, the best case is that governments at all levels will be taking only a third of the average family’s income. For many, taxes and unavoidable government fees will approach 40 percent.

Americans will soon have the power to decide how they spend about 60 cents of every dollar they earn. The Tax Foundation estimates that in 1900, governments at all levels allowed Americans to keep 94 cents of every dollar they earned.

There was no publicly funded safety net in 1900 so we may never be able to return to that tax level. But unless something is done to reverse the trend, the growth of government will soon cost Americans more than half of their income.

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MichaelCarr
Everyone in Washington seems to agree that taxes for the middle class should not go up. The central debate seems to be how to define the middle class and how much more the rich should pay. No one seems concerned with how much the middle class is already paying.
middle,class,income,taxes
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2012-41-05
Wednesday, 05 Dec 2012 07:41 AM
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