Budget Contains Middle Class Tax Increase
While there's the $1 trillion dollars the government likely won't see from allegedly taxing the rich, contrary to Obama's claims, he will eventually be taking money out of middle class pockets.
If one reads enough budget stories, it seems the rich aren't the only ones who will have their taxes raised by Obama. And middle income working Americans won't be able to get around it as the wealthy probably will. By sunsetting this provision below, workers making less than $95,000 will lose $400 bucks out of their pocket each year going forward. They know where the bulk of the money is and that's always where they invariably go to get it in the end.
The $3.8 trillion budget request rolled out by the White House on Monday would renew the Making Work Pay tax credit for fiscal 2011, but then would have it sunset.
That’s a switch from last year, when Obama’s budget called for making the tax credit permanent. The cut costs the federal government about $63 billion in annual revenue while putting up to $400 in the pockets of workers making less than $95,000. It was approved for the first time in last year’s $787 billion stimulus package.
An administration official said the tax credit reflects changing realities in Congress on climate change legislation.