Middle Class Siege

One idea that is getting a lot of attention lately is the demise of the middle class. In particular, many argue that middle class households are staggering under a huge debt load. But what does that really mean? Megan does a good job of putting it in perspective.

Debt certainly can place a burden on people, but taxes can be a worse problem. Taxes are going up due to “bracket creep”. And thats only the direct taxes we all see. Indirect taxation may be worse. Indirect taxation is the result of corporate and business taxes which harm business profits, forcing companies to raise prices. You can tax whomever you want, but in the end, the consumer pays.

We have growing debt, growing taxation, and tax policies that discourage saving for the future.

Yeah, I’d say the middle class is under siege.

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