The McConnell Tax Hike Raises Taxes on Middle Class

I keep hearing this compromise between Obama and the Republicans will only raise taxes on those making $400,000 or more a year. While I am not quite there yet, it also doesn't seem like I am in the clear either when it comes to Uncle Sam confiscating more of my income.

Bloomberg reports the compromise will affect 77% of American households. Trust me, 77% of American households aren't making over $400,000 a year. This means you are going to pay more to Uncle Sam this year.

The budget deal passed by the U.S. Senate today would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.

More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of yesterday.

Be sure to thank all those Republicans like Mitch McConnell who bowed down to Obama on this issue and gave Obama what he wanted.