Skip to comments.Americans feel austerity's bite as payroll taxes rise
Posted on 01/12/2013 6:55:46 AM PST by mdittmar
(Reuters) - Americans are beginning to feel the pinch from Washington's decision to embrace austerity measures aimed at bringing down the nation's budget deficit.
Paychecks across the country have shrunk over the last week due to higher federal tax rates, and workers are already cutting back on spending, which will drag on the economy this year.
(Excerpt) Read more at reuters.com ...
What "austerity measures"?
Um, the rates returned to the same play they have been for 20+ years. That’s not austerity.
American austerity, the unfortunate need to only max out your credit card for the 50” flat screen and not the 60”.
What a joke...... imagine having to get up, wander to the office and then pound out this drivel.
Bwahahahahaha! So rates are back to where they were two stinking years ago! Austerity? The media really are the puppet masters working hand in hand with the marxist in chief.
How bout them b*st*rds taking a pay cut? U watch ...later this year they will vote themselves a raise while we all suck egg. We are no longer a republic, I am afraid.
SS has been running in the red since 2010 and Medicare since 2008.
That was the very first question that popped into my mind. WHAT austerity measures??? They come like thieves in the night and rob us blind so they don’t have to be austere. WE do.
obama already gave them a payraise via an executive order. Wasn’t that just swell of him?
Increases in taxes drag GDP. Decreases in government spending drag GDP. This is not politics. It is math.
GDP = Personal Consumption (decreases if taxes increased) + Investment + Government Spending + (Exports - Imports)
There is one item NO ONE HAS INCLUDED in their analysis.
The “millionaire’s tax” of 2 weeks ago will be $60 Billion in 2013.
The Payroll tax rise will be about 140 Billion in 2013.
The Sequester is slated to be $110 Billion in 2013.
Those sum to 310 B which divided by 15.3T GDP is 2.1% drag on GDP.
The one thing no one has included is that the Aug 2011 debt ceiling deal was 2.2 Trillion ceiling increase for 2.2 Trillion in spending cuts, with 1 Trillion of it immediate and 1.2 Trillion in the Sequester. No One Has Included That First 1 Trillion In Their Calculations. That number was backloaded. Obama would not allow it in FY 2012 for the election. It’s 1 T over 10 yrs with the first year 2 Billion.
So there’s an extra approximately $100 Billion reduced in 2013 vs 2012. This is additional GDP drag of 0.1 / 15.3T = 0.6% of GDP.
This summation of 2.7% is each year of the next 9 years.
This is the payroll tax simply reverting to its normal take of a worker’s pay after it was suspended as part of the Bush tax cuts. Thank FDR and the Democrats.
Obviously, Reuters knows nothing about the U.S. tax system.
You wanted high taxes and runaway spending America.
Enjoy it. :)
The only way to balance, protest or combat this is to stop spending. Don't buy anything above board unless absolutely needed..Screw that new car, or whatever asinine toy or gadget which isn't needed anyway.
This will piss off even more people..More people need to be kicked in the teeth...This is exactly what is needed. In fact, I hope the criminals running government at all levels continue these punishing policies....Let them concoct more fines, regulations, fees, taxes...Lets hope they continue pushing the general population right up against the wall, face first.
“Democracy is the theory that the common people know what they want, and deserve to get it good and hard.” HL Menken
Here is the author of the reuters article.
WHAT AUSTERITY? and why is it the government’s job to spend?
I’ve done my duty...
Just yesterday we made the decision to put off indefinitely a $3000 purchase...It was something desired, but certainly not needed or required.
Once the decision was made, I felt fantastic!
I am now looking for more ways to eliminate spending....
Wow...what a propaganda hit piece! Talk about uneducated fools for the regime!
It isn’t the bite of austerity - it is the bite of Obama.
As the Reuter’s national editor peruses the latest dictum from his masters at the White House. He frowns,leans back in his leather chair, then calls for his favorite hack, Jason Lange, who is two but two desks away from the NE’s glass enclosed office open door “Hey Jason” he calls “take a look at this thing and make it look like Obama is cutting back on “entitlements”.
Jason does quick read without commenting about the FICA “tax” which should never have been suspended because it was breaking the Social Security Trust Fund which doesn’t exist but gets used in the general fund and replies “Gotcha Boss”.
Then low and behold throughout the world and particularly in the US subscribers to Reuters News Service report how the Obama administration is struggling to contain entitlements .
Exactly! Now we know the new meme that is coming...’Obama is taking ‘austerity measures’. No doubt that the order has gone out to the presstitutes to change the meme. Transparent? You betcha.
GDP is more than your short term formula. The main reason we don't have a real recovery this time (or after 2000 for that matter) is people who mistakenly believe that increasing consumer spending leads to more investment. But sustainable recovery requires some reductions in consumption along with investment which has been suppressed due to asinine Fed policies that are mostly aimed at providing low interest rates for more federal borrowing.
Also different kinds of taxes affect investment more. The millionaires tax kills the long term viability of the economy by discouraging investment, The payroll increase has no such deleterious effect.
Well, I started out to write that Democrats don’t understand “Cause and Effect”, but I thought I’d better make sure I understand it. So I looked it up. That led me to take another look at “Deductive Reasoning” and “Inductive Reasoning”. Turns out, they’re still debating those phrases. So I looked at “The Arrow Of Time” and “The Second Law Of Thermodynamics” and “Entropy”. We don’t know anything, I guess. It’s a wonder we all aren’t just sitting around contemplating our navels. Damnit. I hope that’s soap in my navel and not something else.
GDP is the formula by definition.
If someone wants to measure something else, then a different label is required with a different formula.
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