From Obama, the Tax Cut Nobody Heard Of

According to New York Times, there has been a tax cut on Americans' income taxes since President Obama took office, a result of his stimulus package. However, very few people have noticed this.


As reported, there are several reasons why people did not notice this ta cut: 1) their starting salary lowered; 2) they pay more for their health insurance; and 3) their state taxes rise.

I think these reasons are interesting, because it seems that different policies have transferred wealth but no wealth is really transferred to the need. First, employers lowered their labor cost by lowering salary, so money goes to employers. Second, health insurance costs more; therefore, more income goes to insurance market instead of being saved in banks accounts. Third, states raise tax so that state governments collect more money. These steps might have good intentions, but it is not clear to the public. Most people do not know where their money go. They do not know how employees dispose of the money saved by lowering their salaries, they do not know how insurance companies use their increased revenue, they do not know what their money is used for by state governments.