Income Tax Hike – Why Now? Social Security Tax Cut Will Almost Offset Income Tax Hike

It’s not because the Democrats want to make up for the ineptitude of their last eight years in Springfield.

You might think it is because the Democrats are going to lose some votes in Springfield when the new Illinois General Assembly is sworn in on Wednesday.

But I don’t think that’s the real reason either.

Action in Washington has given Illinois Democrats a window of opportunity that is obviously too good to pass up.

Remember what happened in the tax deal that DC Republicans cut with President Barack Obama?

For the next year, the Social Security withholding tax will be cut 2 percentage points.

This headline shows how little the headline writer knows about percentages.

Notice all the emphasis on the description of the income tax hike as “two percent.”

That’s bad seventh grade math (an increase of 2.25 percentage points over three percentage points is a 75% hike), but two percentage points is exactly the amount of the Feds decrease.

So, two and a quarter percentage points up will be offset by the two percentage point cut in Social Security taxes…

For the next year.

When the increase is felt in one’s pay checks, it will be blamed on those nasty Republicans in Congress.

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