Taxes Are Going Up

Quelle surprise:

The tax this year will increase by two percentage points, to 6.2 percent from 4.2 percent, on all earned income up to $113,700.

Indeed, for most lower- and middle-income households, the payroll tax increase will most likely equal or exceed the value of the income tax savings. A household earning $50,000 in 2013, roughly the national median, will avoid paying about $1,000 more in income taxes — but pay about $1,000 more in payroll taxes.

That tax rates are nominally increasing, or that effective tax rates are not decreasing, should come as no surprise.  Government spending must be funded somehow, and the only three possible options for raising revenue are taxation, inflation, and borrowing.  The federal government must have money in order to do what it does, and that money must come from somewhere.  To think that the federal government can spend close to $4 trillion without imposing any costs on anyone except “the rich”—itself a nebulous, ill-defied concept—is simply ludicrous. And to those who complain about the tax burden they must inevitably bear, I simply ask:  what government services do you no longer want provided for you?  If you want the government to do something for you, you must—you will—pay for it. Thus, any complaints about taxes, if they are serious, must be accompanied with complaints about spending.

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