Your math is in fact nonsensical.
en.wikipedia.org
You don't address the math at all, you just deny it without analyzing it or responding to it.
You don't like the math? Point out where its wrong.
Here is the data behind the phase out of benefits and the increase of taxes for people in this range. Tell me what's wrong. Point out one single mistake...
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Taxes
Social Security
Social Security tax is 7.65 percent of income up to a maximum of $108,000. I ignore the amounts paid by employers and the self-employed.
Federal Income Tax
The federal income tax ranges from 10 percent on taxable income up to $11,950 to 35 percent on taxable income above $372,950.
Taxable income is calculated as income less personal exemptions ($3,650 per person, phased out for households with incomes ranging from $208,500 to $331,500) and the standard deduction ($8,350).
The household is assumed to qualify for the child tax credit of up to $1,000 for each of its two children. (This credit phases out for households with incomes ranging from $75,000 to $95,000.)
State Income Tax
The Virginia state income tax is simply calculated as 5 percent of income. This ignores the minor effects of the Virginia personal deduction, the standard deduction, and the initial brackets in which one pays less than 5 percent tax.
Subsidies
Earned Income Tax Credit (EITC)
The EITC provides a maximum annual benefit of $5,028. For qualifying households, the amount rises ("phases in") with earned income up to $12,570, is level ("plateaus") from there to $16,420, and falls ("phases out") from there to $40,295.
Food Stamps
Food stamps provide a maximum monthly benefit of $526. For qualifying households, the amount phases out between a monthly income of about $850 and a monthly income of about $2,450.
Medicaid/SCHIP
Medicaid eligibility varies by state. I assume households are eligible if their income is less than 133 percent of the federal poverty line. If one is eligible, this program covers all medical expenses. I assume the value of Medicaid coverage is $9,000.
If a household is not eligible for Medicaid, members of it may still be eligible for SCHIP. I assume that the children are eligible if household income is less than 200 percent of the federal poverty line, and that the value of this coverage is $6,000.
For low-income families, being covered by Medicaid or SCHIP means workers can look for employment that emphasizes cash wages at the expense of employer-subsidized health insurance.
Section 8 Housing
Section 8 housing subsidies cover qualifying rent and utility expenses in excess of 30 percent of household income.
For low-income families, qualifying for section 8 housing means the household can look for housing comparable to what moderate-income families can afford.
Cash Assistance
Temporary Aid to Needy Families (TANF), the successor to AFDC, is assumed to provide qualifying households with a cash grant of $395 per month.
mises.org
Also see
econlib.org
and
nytimes.com
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So you make more but you lose a $395 cash grant, plus housing subsidies, plus Medicaid eligibility (and maybe SCHIP eligibility as well), you start paying state income tax, and federal income tax (but countering that you might start getting or get more EITC), you pay FICA tax on the additional income, and if health care "reform" passes in a state at all like the current bills, you lose a substantial subsidy for insurance as your income goes up. That's all reality, not "talking point bull shit".
Its not a new problem, but its been growing over the decades, now Pelosicare may increase it in to a critical level. |
