Contrary to repeated campaign promises, President Obama’s policies will increase taxes on the middle class.
Adding together state taxes, federal income tax, federal Social Security and Medicare payroll taxes, middle class Americans can expect to see their paycheck nearly halved, in most states the total amount deducted through payroll will be 43.12 percent. Heritage’s Patrick Tyrrell explains:
In January of next year, the federal income tax rate for middle-class taxpayers is scheduled to rise from 25 percent to 28 percent, and the payroll tax is scheduled to rise from 13.3 percent to 15.3 percent. This drives the marginal tax rate based on the aforementioned three taxes to 48.12 percent. Add in state and local property, corporate, excise, and other state and local taxes, and the percentage of each additional dollar that is taxed hovers around 50 percent.
Scroll down on the infographic below to find your state and see how much middle-class Americans will lose under President Obama’s tax reforms.