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Our View: We never saw it coming
Feb 08, 2013 | 5115 views | 4 4 comments | 8 8 recommendations | email to a friend | print

A ton of Americans didn’t see the payroll tax increase coming. Others simply didn’t want to believe it when they heard or read about it, upon the rare occasion that the media would report on it. It had to just be right-wing talking points.

But when it hit their paychecks in January, they became believers.

“An increase in Social Security taxes is leaving Americans with less take-home pay — and a more negative outlook for the U.S. economy,” The Associated Press reported.

“The Conference Board said that its Consumer Confidence Index dropped 8.1 points in January from December to a reading of 58.6, the lowest since November 2011. … Conference Board economist Lynn Franco said the tax increase was the key reason confidence tumbled in January, making Americans less optimistic about the next six months.

“For a worker earning $50,000 a year, take-home pay will shrink this year by about $1,000.”

This shouldn’t have been any surprise.

For one thing, the national media could’ve done a better job warning people (as this page did). But perhaps they didn’t want to rain on President Barack Obama’s fiscal cliff victory — although, didn’t he promise no tax increases on anyone making less than $200,000?

For another thing, the media have constantly attacked anyone preaching fiscal prudence in government. Think Tea Party. What the media should have been doing during the tax-and-spend debate of the past year is to stress to readers and viewers that the more money you take out of earners’ hands, the less money they have to spend.

That sounds simple enough. But if we’ve got that so down pat, why was the January tax increase implemented and why was it able to sneak up on so many people?

The reason that happened is also simple: The national media took Obama’s implicit message — that tax increases on the wealthy will improve the economy — and they ran with it. They let him snooker people into somehow believing that feeding the federal government behemoth is in some magical way going to improve things in the society at large. …

This just in: Higher taxes slow the economy.

Surprise!



Comments
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AmericansForTruth
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February 09, 2013
This article is nothing but a lie... It was no surprise that the Social Security Payroll Tax break was going to end.. It was only for two years. Most working people appreciate the tax break they got for two years and so did the employers. The ones that are making over $400,000.00 will see a tax increase, and they should be happy that they got a tax break for over ten years.
419Jasons
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February 12, 2013
The whole tax the rich thing is a big propaganda scam that many have bought into. Assuming you have a job, check your next pay stub, and see how it changed. Less money, is less money; no matter who you are. Quit carrying water for this big government con man, he is the one telling the lies. His 1st term ended with a bunch of unbroken promises. He promised to do the same things in his 2nd term, that he had promised in his first term, that he didn't fulfill. Good grief, wake up.
BossTweed
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February 14, 2013
This had to end because of the Ponzi Scheme called Social Security. There are too few people paying in now, and too many people taking payments. So if the 2% cut had stayed in place, the system would go into insolvency that much faster. Should've never cut the 2% in the first place.
navytide
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March 03, 2013
Bush's last 4 years...GDP growth at 1.8% including the downturn beginning 2007 - compare with your Boy Chairman Mao-Bama's first term GDP "growth" rate of 0.8% - yep, I guess he is THAT good, eh? This has been widely reported over a week ago in most reputablel papers like the Wall Street Journal and Investor's Business Daily - of course Chairman Mao-Bama's compliant media did not dare mention that!! At any rate, it would not have mattered as so many low-info voters out there support the Big Lie (& Liar)no matter what rational argument or facts would tend to push normal voters away...Go figure - can anyone who knows anything about basic economics see the lunacy in raising any taxes in a recession?
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