A middle-class taxpayer’s income is subject to a 25 percent federal income tax. Then there is the federal Social Security and Medicare payroll tax of 13.3 percent in 2012—5.65 percent of that is removed from the employee’s paycheck, and the remaining 7.65 percent is paid by the employer. (In reality, the employee pays the entire 13.3 percent, because the employer’s portion of the tax does not affect the cost of labor: The employer would pay the employee 7.65 percent more if there were no employer’s portion of the payroll tax.)
So the 25 percent federal income tax plus 13.3 Social Security and Medicare payroll taxes equals 38.3 percent going to federal taxes in 2012.
And then there are state taxes. According to the Tax Foundation, the average state’s income tax rate for the middle-class taxpayer is 4.82 percent, which brings the total to 43.12 percent in federal and state taxes. And it’s going higher, thanks to the nearly $500 billion in tax increases for 2013 that some have called Taxmageddon. In January of next year, the federal income tax rate for middle-class taxpayers is scheduled to rise from 25 percent to 28 percent, and the payroll tax is scheduled to rise from 13.3 percent to 15.3 percent. This drives the marginal tax rate based on the aforementioned three taxes to 48.12 percent. Add in state and local property, corporate, excise, and other state and local taxes, and the percentage of each additional dollar that is taxed hovers around 50 percent.
When half of each additional dollar earned is taxed away, taxpayers experience a disincentive to start businesses or expand existing ones. This leads to fewer jobs being created.
It is outrageous that any dollar earned by a middle-class taxpayer would go as much to taxes as to supporting the taxpayer’s family. The government didn’t earn the taxpayer’s paycheck and shouldn’t be entitled to it.
People like me really do think about things like this – about getting up and going to work every day to earn half of what I am worth. Of giving up half my salary so that the Georgetown University student can have free contraception paid for by me. I am one of those people who pays about 45% of my income (federal, state and local) in taxes. If I had more of my own money, I could be following my own dreams – maybe to do a Ph.D and teach, or start a business, or become a minister. But those things can’t happen, because people keep voting for more and more benefits for themselves on my back – so that they don’t have to be burdened to make the decisions that it takes to take care of themselves and their families.
That’s what being a Democrat means – it means persisting in perpetual adolescence at the expense of people like me. It means taking away my dreams so that they can have my standard of living without having to work or play by the rules. Being a Democrat means piling up trillions of dollars of debt onto people who haven’t even been born – so that feminists can have free contraceptives. That’s what a Democrat is.
Here’s a great article that will blow your mind from the Wall Street Journal. (H/T Tom)
Excerpt:
With the average price of gas in America hovering around $3.50 per gallon for regular unleaded, it costs more than $50 to fill a typical car’s 15-gallon tank this summer. Why does gas cost so much?
You may blame high gas prices on rich oil company executives or greedy gas station owners. The truth is that governments rake in a larger profit at the pump than anyone—and with gas taxes on the rise in many parts of the country, there’s no relief in sight.
The price of a gallon of gas is based on the combination of four costs: that of crude oil, of refining gas, of distribution and marketing, and of taxes.
Crude oil costs make up about 76% of the cost of gasoline, according to U.S. Energy Information Administration (EIA). Thus $2.66 of a $3.50 gallon of gasoline is set before the oil is even refined. Global markets, reacting to supply and demand, determine the cost of crude oil. Just like any commodity, from gold to corn, a shortage in supply or an increase in demand leads to a rise in prices.
Refining oil is the next step in the process—and the next expense for drivers. Gasoline is extracted from crude oil and additives, including lubricants and detergents to reduce engine deposits, are added. As of January 2012, the EIA found that refining was responsible for 6% of the cost of gasoline.
Distribution and marketing—the part of the process most apparent to consumers—constitutes another 6% of gas prices. That portion of the cost includes the shipping and transportation of the gasoline, a markup to cover retailers’ expenses, and any advertising created to appeal to customers.
The remaining 12%—or almost 50 cents per gallon today—goes directly to federal, state and local governments in an array of sales and excise taxes. The federal gas tax is 18.4 cents on every gallon of gasoline sold in America. State gas-tax rates vary from a low of eight cents per gallon in Alaska to a jarring 49 cents per gallon in New York. Other states where it’s steep to fill up include California and Connecticut—each with 48.6-cent-per-gallon gas taxes—and Hawaii, at 47.1 cents per gallon.
Some local governments have gotten in on the act, too. In California, local sales and excise taxes on gasoline average 3.1%, according to the Los Angeles Times. That works out to about 12 cents in local taxes for each gallon of gas, based on the state’s current average of $3.80 per gallon.
[…]Exxon, for example, made only seven cents per gallon of gasoline in 2011. That’s a drop in the bucket compared to the nearly 50 cents per gallon that federal, state and local governments rake in on an average gallon of gas pumped in the U.S.
That’s not going to stop the unproductive socialists in government for accusing oil companies of being greedy. Who’s really greedy? Government is greedy. They take more of your money in gas taxes than the oil companies do.
Sarah Palin told a cheering crowd late Friday that America needs to get back to its “clinging to God and guns” roots, as the tea pea party’s biggest names made a series of last-minute, high-profile appearances around Texas to support insurgent conservative U.S. Senate candidate Ted Cruz.
The former Alaska governor and 2008 GOP vice presidential candidate spoke to more than 1,000 boisterous and sweating Cruz supporters gathered under a mercilessly early-evening sun on a grassy knoll in The Woodlands, a well-to-do Houston suburb. She told them that “to make America great, we don’t need a fundamental transformation, we need a fundamental restoration.”
“Fighters like Ted Cruz can lead the charge for us,” Palin said.
Cruz, the former Texas Solicitor General, is locked in a fierce and increasingly nasty battle with the mainstream Texas GOP choice, Lt. Gov. David Dewhurst, for the Republican nomination to replace retiring U.S. Sen. Kay Bailey Hutchison. The pair face a runoff Tuesday because neither won a majority in a nine-Republican senatorial field during the state’s May 29 primary.
The conservative Club For Growth is backing Ted Cruz:
Today, we are excited to announce that national pro-life, family values leader Dr. James Dobson is endorsing our Senate campaign.
In his endorsement announcement, Dr. Dobson said: “I’m pleased to endorse Ted Cruz for U.S. Senate because he’s exactly the kind of candidate we need to turn this country around. Religious freedom is under assault every day. We need leaders with the courage to stand strong for conservative values in this battle. Ted Cruz is such a leader—one who will not only vote his convictions in the Senate, but will also lead the fight to defend life, traditional marriage, and religious liberty.”
Dr. Dobson added: “Ted Cruz stands out among conservative leaders across the country today. He has a consistent record of standing up for faith, family, and freedom, and winning values battles on a national level….I urge all Texans who love life, family, faith, and freedom to not only vote for Ted Cruz, but to work hard for his campaign.”
Even moderate conservative George Will thinks that Republican candidate Ted Cruz is the man to replace Kay Bailey Hutchison in Texas.
Excerpt:
For a conservative Texan seeking national office, it could hardly get better than this: In a recent 48-hour span, Ted Cruz, a candidate for next year’s Republican Senate nomination for the seat being vacated by Republican Kay Bailey Hutchison, was endorsed by the Club for Growth PAC, FreedomWorks PAC, talk-radio host Mark Levin and Erick Erickson of RedState.com.
For conservatives seeking reinforcements for Washington’s too-limited number of limited-government constitutionalists, it can hardly get better than this: Before he earned a Harvard law degree magna cum laude (and helped found the Harvard Latino Law Review) and clerked for Chief Justice William Rehnquist, Cruz’s senior thesis at Princeton — his thesis adviser was professor Robert George, one of contemporary conservatism’s intellectual pinups — was on the Constitution’s Ninth and 10th amendments. Then as now, Cruz argued that these amendments, properly construed, would buttress the principle that powers not enumerated are not possessed by the federal government.
[…]At age 14, Cruz’s father fought with rebels (including Fidel Castro) against Cuba’s dictator, Fulgencio Batista. Captured and tortured, at 18 he escaped to America with $100 sewn in his underwear. He graduated from the University of Texas and met his wife — like him, a mathematician — with whom he founded a small business processing seismic data for the oil industry.
By the time Ted Cruz was 13, he was winning speech contests sponsored by a Houston free-enterprise group that gave contestants assigned readings by Frederic Bastiat, Friedrich Hayek and Ludwig von Mises. In his early teens he traveled around Texas and out of state giving speeches. At Princeton, he finished first in the 1992 U.S. National Debate Championship and North American Debate Championship.
As Texas’s solicitor general from 2003 to 2008, Cruz submitted 70 briefs to the U.S. Supreme Court, and he has, so far, argued nine cases there. He favors school choice and personal investment accounts for a portion of individuals’ Social Security taxes. He supports the latter idea with a bow to the late Daniel Patrick Moynihan, who said such accounts enable the doorman to build wealth the way the people in the penthouse do.
Regarding immigration, Cruz, 40, demands secure borders and opposes amnesty for illegal immigrants but echoes Ronald Reagan’s praise of legal immigrants as “Americans by choice,” people who are “crazy enough” to risk everything in the fundamentally entrepreneurial act of immigrating.
You can find out more about Ted Cruz on his positions page. I was interested in his stance on social issues, in particular.
Excerpt:
Ted Cruz has fought to protect innocent human life. He played a leading role in several important cases, including defense of the partial-birth abortion ban, parental consent laws, and prohibiting state funds from going to abortion. These cases have all been part of the ongoing effort to ensure that every child in America receives the protection and respect he or she deserves.
Authored an amicus brief for 13 states, successfully defending the federal Partial Birth Abortion Ban Act. The ban was upheld 5-4 before the U.S. Supreme Court;
Authored an amicus brief for 18 states, successfully defending the New Hampshire parental notification law. The law was upheld 9-0 before the U.S. Supreme Court [note: this brief was awarded the Best Brief Award from the National Association of Attorneys General for U.S. Supreme Court briefs written in 2005-06];
Successfully defended Texas’s Rider 8, which prohibits state funds for groups that provide abortions, winning unanimously before the Fifth Circuit court of appeals.
Ted Cruz has worked hard in defense of traditional marriage, including his intervention in a case protecting Texas marriage laws. In addition, he has fought on the federal level to defend marriage between one man and one woman as the fundamental building block of society.
When a Beaumont state court granted a divorce to two homosexual men who had gotten a civil union in Vermont, Cruz, under the leadership of Attorney General Greg Abbott, intervened in defense of the marriage laws of the State of Texas, which successfully led to the court judgment being vacated;
Worked with Attorney General Abbott to send a letter to Congress in support of the federal Defense of Marriage Act.
He has a solid recordconservative policies on that page: energy production, voter fraud prevention, border security, legal firearm ownership – you name it, this guy has been fighting for conservative principles. Like Michele Bachmann, he has actually tried to do pro-life and pro-marriage things. We don’t just have to take his word for it, he has the actions to prove his words.
WINTERY KNIGHT 