First Tax Increase in Less Than a Week with New Congress

The Democrats have already passed a tax increase 6.5 billion in the first week of the new congress. Yet they called it the Minimum Wage Increase to help the “poor”. Call it what you want but all it really does is increase the Social Security taxes that go to the government’s general fund. It only helps roughly 0.1% wage earners that are in households in the poverty level. Yet it impacts 0.5% of legal US employees.

The biggest impact is upon the small business owners. This minimum wage increase will cost the employer 2.26 in wage and Social Security taxes. There is still an increase in un-employment taxes and workers compensation also. As consumers we will feel the pinch first at the fast food restaurants.

This tax increase was not necessary with unemployment at record all time lows, economics will drive up the minimum wage naturally. We must always remember the lessons that our great President Ronald Reagan taught us. By cutting taxes, you make it better for everybody. By cutting taxes for the “rich”, the “rich” reinvest which creates more jobs.

Worst of all the tax increase is the biggest burden on the people that need the money the most. Our Social Security tax is a regressive tax. What that means is the more you make, the less you pay. In 2006 at $92,500 you no longer paid social Security tax, but you still continue to pay Medicare. Family members in house holds below the poverty level never see this tax break.

While this bill was being shoved through Congress, our First Woman Speaker of the house, wasted no time in learning new tricks. She slipped through an exemption through for a large corporation in her district. When challenged about this, she claimed she had no part in it. Nancy is right, she did not. If I am not mistaken, as the Speaker she can not introduce bills or amendments. Nancy must have had another Democrat include it for her.

Don’t worry. The Democrats are already working what they claim to be their first tax increase. They must be using new math, because I count this to be tax increase number two.

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