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View Diary: Trumka: Pay Freeze Is Bad for Middle Class, Economy, And Business. (310 comments)

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  •  Can somebody tell me (1+ / 0-)
    Recommended by:
    mrkvica

    in very, very concrete terms (like amounts, you know, actual dollar amounts?) how much it's going to cost people?

    I honestly don't care how much it costs the rich, they can deal with it. How much will it cost a family of 2, 3, 4 (those are average families) making 30, 40, 50, 75, 100k?

    And how much difference will it be per month?

    I want to know - nobody ever says, and it makes a HUGE difference in how people will react to it.

    If it costs me an extra $10/wk, I really won't even notice it. I make a decent living, I can deal with that.

    All the fancy charts I saw earlier this year didn't have a whole lot of difference until you got to the higher end of the scale. And frankly, I don't care what happens to those at the higher end of the scale.

    I remember a tax CUT last year, does anybody remember that? I'm assuming that that's not going away. That big tax cut got me a whole $30/mo difference. Whoop.

    So tell me numbers, because I'm not freaking out over ANYTHING until I know EXACTLY what it's going to do.

    •  2 year freeze (2+ / 0-)
      Recommended by:
      mrkvica, Trotskyrepublican

      assuming approximate 2% raise not given will cost a 40k gross income family about $800 a year.  That's pretty significant, given what their actual income is after Federal and state income taxes.  And given the 9-14% boosts this year in medical insurance premiums for Federal workers.

      It also costs on the backend when eventually calculating pension and social security benefits.  If "high 5 or high 3" formula are used and people are close to retirement these freezes really hurt.

      Democrats give you the Bill of Rights; Republicans sell you a bill of goods!

      by barbwires on Mon Nov 29, 2010 at 02:11:08 PM PST

      [ Parent ]

      •  Not the pay freeze (0+ / 0-)

        the tax increases. Pay freezes have been happening to EVERYBODY, why should the feds be immune?

        I want to know how much the tax increase will be.

        •  But pay freezes are important! Of course (3+ / 0-)
          Recommended by:
          mrkvica, cassidy3, DataMonster

          They are happening to everybody else...and who employs everybody else? Yep, corporations! They don't want to pay decent wages, let alone union wages, and having the govt support unions and living wages set a standard for ALL people to live up to. Yet when you allow wages to stagnate, or support less pay for same or more work, you drive the pay scale downward, not upward. Wages have been stagnant for decades, and having the government sanction that by adding their employees to it only reinforces downward pressure. It is important, VERY important.

    •  Tax increases (0+ / 0-)

      from the tax cuts not being partially extended would be $418.75 for singles making at least $8,375 of taxable income, from the 10% bracket being rolled back into the 15%, plus 3% of taxable income from $34,000 up to $250,000 or whatever the cutoff ends up being.

      For married filing separately, the extra tax on head of household would be $597.50 assuming taxable income of at least $11,950, plus 3% of taxable income from $45,550 up to the cutoff. For the other spouse, it's similar to the case for singles but perhaps with a different upper cutoff.

      For married filing jointly, the extra tax would be $837.50 on joint taxable income of at least $16,750, plus 3% of joint taxable income from $68,000 up to the cutoff.

      Note in each case there is a donut hole; the marginal rate will be 15% either way within a fairly sizable gap, so the tax cut for many Americans is the same flat amount depending on filing status.

      Also, most everyone claims deductions, the minimum of which is the $5,700 standard deduction; the income thresholds above are after any deductions (standard, special, or itemized) have been made.

      As for last year's tax relief, I believe that was part of the stimulus plan, and it doesn't renew.

      I am not a tax lawyer, nor an accountant.

      Sources:
      http://en.wikipedia.org/...
      http://en.wikipedia.org/...
      http://en.wikipedia.org/...

      Fly the American flag; burn the Gadsden snake flag. It's your patriotic duty.

      by cville townie on Mon Nov 29, 2010 at 05:50:29 PM PST

      [ Parent ]

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