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Conservative leader Erick Erickson has noted the dangers of the Bernie Moreno-Elizabeth Warren $3 trillion tax hike.
In a piece titled “The Bipartisan Plan to Kill the Economy,” Erickson wrote:
Senators Bernie Moreno of Ohio and Elizabeth Warren of Massachusetts have teamed up to destroy the American economy. Under their plan, the cap on the payroll tax would end. Right now, all earnings up to $184,500 are taxed for purposes of Social Security and Medicaid.
Moreno and Warren want to get rid of that $184,500 cap.
Anyone self-employed already knows the burden of taxation to fund our social welfare state. If Moreno and Warren are successful, the effective maximum federal tax rate would exceed the highest tax rate since Kennedy was President. Combined with state taxes, some Americans would pay a tax rate of over 65%.
Remember too that you alone do not pay the full tax rate. Businesses split it with you. This is why the self-employed are under a significant tax burden. Since they are both the employer and the employee, the self-employed pay the full rate. Independent contractors would be financially ruined.
