PPRuNe Forums - View Single Post - Auckland stays near top of unaffordable list - Check out Hong Kong
Old 29th Jan 2013, 02:02
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Liam Gallagher
 
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Threethirty

I think you need to read the link about Midde Class Tax rises more carefully. It was written pre-election and reinforces what I am saying. The removal of the Bush Tax Cuts for those earning $250k (your article), $400k in reality, is largely window dressing. Obama likes to talk up the revenue generated by quoting 10 year figures, but the reality is only $60bn p.a. will be is generated versus a yearly spending deficit of $1300bn.

The 2% increase in FICA came as a surprise to many. Equally, Obamacare starts to kick in. I understand the Obamacare Act was over 1,000 pages long and I am yet to meet anyone who really understands the effect of Obamacare. However, a European style Healthcare system it is not!!

Bottom line, if you think the middle-classes are getting hit post 1 January 2013, do the math. The expired Bush Tax cuts generate $60bn, coupled with 2% FICA rise gives $180bn increased revenues. That increase in revenue does not even pay the interest bill on the current debt.

Such is the scale of the problem.
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