images-9

The White House has confirmed that President Obama’s forthcoming budget contains an income tax increase on middle class Americans.

During a Friday, April 5 White House press briefing, spokesman Jay Carney replied “I’m not disputing that” when asked if a particular Obama budget proposal would raise income taxes on the middle class.

The proposal in question is known as “Chained CPI.” The term is a Beltway euphemism for measuring inflation at a different, slower pace.  Many tax and budget items are indexed to inflation, so slowing inflation’s measured rate of growth has both spending cut and tax increase implications.

On the tax side, all income tax brackets are subject to inflation.  Slowing down the inflation rate slows down the annual rate of growth in all income tax brackets.

This means the Obama budget contains a tax increase on 100 percent of middle class taxpayers—anyone who pays the federal income tax.

Read more: http://atr.org/