Let's see how people react to their first pay check in the new year. When the Bush tax cuts went into effect, I was doing payroll. I had all sorts of calls from employees wondering where that extra hundred dollars or so on their check came from. They believed that lie that the cuts were only for the wealthy.T
The cuts first went into effect in 2001, so a good portion of the current working class were not even in the work force then. I think they will be shocked.
Worse, health insurance premiums were pre taxed. That means that employees didn't pay taxes on those portions of their health insurance that they did pay. And most employees have no idea how much their employer pays for their contribution toward health insurance. If all health insurance payment become taxable income, people will see an additional six or seven hundred dollars of taxable income added to their pay stubs.
That will have the effect of pushing people who never really paid taxes into a taxable situation. I think they will squeal like a mashed cat.