Almost nothing is more obscured than the FACT that FIT tax rate reductions on income below $400K also apply to the FIRST $400K of income of the "rich" as well. The impression that the "rich" don't get the benefit of reductions in the tax rates is insidious hogwash!

We're STILL taxing earned income (that income derived from one's own labor) at higher rates than unearned income (income derived from the labor ofothers or the death of another). It's appalling to me that the Working Class is not only enriching the already-rich but is more heavily burdened in our tax system than those who, by virtue (or lack thereof) of our perverted economic system gain the greatest benefit from their labors!

Until the 70's, it was thought that labor equity (that portion of the value of labor returned to the worker) was essentially constant at 60%. Today, the average share of the value of a worker's labor in the S&P 500 returned to employees in the form of "employee compensation" is less than 35% of the value of that labor. That's fucking appalling!

But that only means that we have more work to do

income as well -- at every level of income.

also wish to point out that continuing to tax capital income at lower rates than labor income is not only unfair, it also has a political value, in that it tends to bias the upper-middle class toward policies that favor capital. and this section of the electorate is key in most political contests.

not the pre-Bush-tax-cut rate of 39%....because they still get the lower tax rate of 33% on $400k-$450k.

It makes it bearable not having to swim through a pool of tears.

Welcome to this special edition of the "Journal Editorial Report" as we look back on the year that was and the challenges facing us in 2013.

First to our big stories of 2012. America's left turn. From the Supreme Court's landmark health care decision to the re-election of President Barack Obama, politics on the national level, headed in a decidedly liberal direction. So what happened and what does it mean for the country going forward?


Read more: http://www.foxnews.com/on-air/journal-editorial-report/2012/12/31/americas-left-turn-2012#ixzz2GjGgbDPw

looked on New Years' Day 5 or 6 years ago. We're light years better.

Happy New Year!

It's a start - a most positive start!

This is going to hurt the middle class, strange how no-one is talking about it.

Oh, by the way, this tax has no impact on earnings above 115k.

Things aren't looking too good as my tax bill just increased a few hundred dollars a month.

I'm sure plenty will be waking up to this fact when they get their first or second check of 2013.

While the politicians are thumping their chest about raising taxes on the rich, there is nothing being said about the fact that all of the average workers are losing an additional 2% of their income to the payroll tax. That tax increase has gone un-noticed by those who were completely focused on taxing the rich.

What should have been done was to leave the payroll tax "as is" and then move the cap to $250,000. You might have even been able to lower the rate a bit if you did that. Instead, the politicians have spoon fed us what we wanted and stuck a knife in our back as we cheered them on.

The old rate of a upper middle class/rich person: 39%

The 2012 rate of an upper middle class/rich person: 33%

The new rate of an upper middle class/rich person per the current deal: 33% up to $400,000 for an individual; a few more % points for amounts OVER $400,000.

It is NOT 39% for all income for those who earn $400,000 and over, which was the old rate.

their eyes will glaze over at "2012"

What a wonderful, positive post to start the new year with. Thanks, MrScorpio.