HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Americans feel austerity'...
Introducing Discussionist: A new forum by the creators of DU

Sat Jan 12, 2013, 11:51 AM

Americans feel austerity's bite as payroll taxes rise

Source: Reuters


By Jason Lange

WASHINGTON | Sat Jan 12, 2013 9:29am EST

(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.

In Warren, Rhode Island, Ben DeCastro got his first paycheck on Friday in which taxes on his wages rose by 2 percentage points. That works out to about $30 a week.

"You sit back and do the calculation, and that's $30 I'm not going to spend at a restaurant," said DeCastro.

He said he worries that people hit by higher taxes will spend less at the chain of furniture stores where he works as a marketing manager.

-snip-



Read more: http://www.reuters.com/article/2013/01/12/us-usa-fiscal-taxes-idUSBRE90B0AW20130112

31 replies, 2790 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 31 replies Author Time Post
Reply Americans feel austerity's bite as payroll taxes rise (Original post)
DonViejo Jan 2013 OP
SHRED Jan 2013 #1
alberg Jan 2013 #17
NYC_SKP Jan 2013 #2
djean111 Jan 2013 #4
SWTORFanatic Jan 2013 #7
djean111 Jan 2013 #19
awoke_in_2003 Jan 2013 #30
aintitfunny Jan 2013 #3
dkf Jan 2013 #5
2ndAmForComputers Jan 2013 #13
aintitfunny Jan 2013 #31
Tempest Jan 2013 #6
DallasNE Jan 2013 #12
madrchsod Jan 2013 #20
dkf Jan 2013 #14
high density Jan 2013 #27
JDPriestly Jan 2013 #15
former9thward Jan 2013 #23
Tempest Jan 2013 #24
former9thward Jan 2013 #25
bhikkhu Jan 2013 #8
littlewolf Jan 2013 #9
pasto76 Jan 2013 #10
formercia Jan 2013 #11
LoisB Jan 2013 #16
lunatica Jan 2013 #18
Tarheel_Dem Jan 2013 #21
obama2terms Jan 2013 #22
SheilaT Jan 2013 #26
Sunlei Jan 2013 #28
blkmusclmachine Jan 2013 #29

Response to DonViejo (Original post)

Sat Jan 12, 2013, 11:59 AM

1. We all need to pull together...

...Wall St is hurting after all.



Reply to this post

Back to top Alert abuse Link here Permalink


Response to SHRED (Reply #1)

Sat Jan 12, 2013, 02:17 PM

17. The problem is the phrase "payroll tax". It's not a "tax", it's a contribution to your retirement

insurance fund. You get it back as income in retirement to support you in your later years.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 12:00 PM

2. Bullshit

It's the end of a much needed stimulus measure, not a new tax or an austerity measure.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to NYC_SKP (Reply #2)

Sat Jan 12, 2013, 12:03 PM

4. Yup. Exactly.

The spin is ridiculous - but I am worried that real austerity is waiting in the wings.
The government's real bosses are champing at the bit, wanting to inflict austerity.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to djean111 (Reply #4)

Sat Jan 12, 2013, 12:15 PM

7. Nope, go back to 4.2% rate, but lift SS tax and apply to capital gains

problem solved

Reply to this post

Back to top Alert abuse Link here Permalink


Response to SWTORFanatic (Reply #7)

Sat Jan 12, 2013, 02:34 PM

19. Of course you are right - but

the people who would be in charge of doing this - or who would, of course, need to approve of this - are not going to let that happen.
In my opinion, the powers that be have all intentions of inflicting austerity, even though it is illogical at best and doesn't work, no matter what the electorate says or wants or demonstrates against or whatever.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to NYC_SKP (Reply #2)

Sun Jan 13, 2013, 12:33 AM

30. Yep, utter BS...

this misguided tax break was meant to be temporary. I would rather see SS still alive when I retire. If they kept up the break it would have eventually killed it.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 12:02 PM

3. Expiration of a temporary gift does not equal austerity.

Damn liberal press.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to aintitfunny (Reply #3)

Sat Jan 12, 2013, 12:12 PM

5. Temporary gifts like the Bush tax cuts?

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dkf (Reply #5)

Sat Jan 12, 2013, 01:56 PM

13. Those should end too.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dkf (Reply #5)

Sun Jan 13, 2013, 10:49 AM

31. Long term temporary!

So much for temporary.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 12:14 PM

6. The guy's making $6000 a month after taxes and complaining about $30 a week?

Unless my math is wrong.

And if it's not, he's got some nerve.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tempest (Reply #6)

Sat Jan 12, 2013, 01:54 PM

12. Right, And His Gross Is $78,000 Per Year

And well above the median income of just over $50,000. While $1,560 a year is more than pocket change one would bet that when he retires he expects Social Security to be there 100%.

Of course this writer like to put a negative spin on everything he writes. Besides, the fiscal cliff deal was not designed as a deficit reduction bill. That is part of sequesterization which was kicked down the road for 2 months. Same with austerity spending cuts. Just about everything in his spin is inaccurate so I wonder which political party he belongs to (he' not important/famous enough to have a wikipedia page).

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DallasNE (Reply #12)

Sat Jan 12, 2013, 02:52 PM

20. that`s more than two years gross for my wife and i

she works an average of 50 hours a week and i`m on ss and medicare. we average 36 thousand a year

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tempest (Reply #6)

Sat Jan 12, 2013, 02:10 PM

14. Sounds like he spends everything he earns. Sad.

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dkf (Reply #14)

Sat Jan 12, 2013, 08:44 PM

27. That seems to be the case

I earn around what Ben does and this tax increase will lower my savings rate. I will still buy everything I bought before.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tempest (Reply #6)

Sat Jan 12, 2013, 02:14 PM

15. He's a Republican in his heart if not on the voter rolls.

You can't expect him to understand arithmetic.

Republicans can't do arithmetic. They would not be Republicans if they could.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tempest (Reply #6)

Sat Jan 12, 2013, 06:13 PM

23. He is making $6000 a month before taxes.

The payroll tax is on gross.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to former9thward (Reply #23)

Sat Jan 12, 2013, 06:17 PM

24. That doesn't sound right

That would be $288,000 a year.

His bite would be bigger than 2%.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Tempest (Reply #24)

Sat Jan 12, 2013, 06:20 PM

25. My error. I meant $6000 a month assuming 4 week months.

Corrected on edit.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 12:24 PM

8. My boss did a round of raises to compensate

as 2012 worked out to be another pretty good year. Hopefully it works out ok for most people!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 12:36 PM

9. Oh PLEASE it is only SS going back to where

it HAS been .... it was TEMPORARY ... that means it was going to end!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 01:09 PM

10. hey asshole, you should have been putting 30 bucks in a saving account

or spending it on real food. Thankfully I got the first raise in 4 years this week. Yeah I noticed the higher deduction, but I can live with that if the ultra rich are payer more now too.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 01:19 PM

11. I've noticed a lot of this Reich-Wanker Propaganda lately

This is not a tirade against the OP, but the boys are trying to frame this like it's the Administration's fault.

There needs to be a lot of push-back to move the Narrative into the realm of Truth.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 02:15 PM

16. Never should have been cut in the first place. If anything, the cap needs to be raised!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 02:19 PM

18. I haven't spent money at a restaurant or movie in a couple of years

It's not like the tax holiday was a huge bonus of mad money. Losing it just makes me think that at least it's going into my Social Security income which isn't all that far away.

I feel so sorry for people who have to stop going out to a restaurant to eat.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 03:17 PM

21. Not sure why you thought it appropriate to post this without comment. But, you know.....

or at least, should know, that this was not a tax hike, but the expiration of the SS tax holiday that went on for TWO years. What other holiday lasts for TWO years? Many progressive economist celebrated the end of this holiday as they were concerned that SS was being underfunded. Republicans are content to let the M$M frame this as a tax hike, but I hate when so-called progressives take the bait. Being in my mid 50's, I am thrilled to contribute to the fund that may support me in my old age.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 05:22 PM

22. 30$ I'm not going to spend at a restaurant

Please! At least he's not saying, that's money I put towards groceries. He already paid that rate several years ago so this isn't some new thing, some people are just dumb.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 08:25 PM

26. I must say, that as little as I currently earn,

I did not notice any change in my paycheck when the stupid tax holiday took effect, and I doubt I'll notice any difference now. For me it's maybe four bucks per paycheck. Big freaking deal. I honestly can squeeze the four bucks from somewhere else without becoming homeless.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sat Jan 12, 2013, 09:10 PM

28. goes to show the 2 year long Obama 'tax holiday' stimulus did pump $ into the economy

I spent my little bit of extra money too

Now if we can raise the SS cap to everyones first 450k perhaps we can lower the payroll taxes again.

And cut out the Romney type wealthy from their guaranteed SS checks unless they go broke.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to DonViejo (Original post)

Sun Jan 13, 2013, 12:00 AM

29. Everything's going according to plan.

Austerity Now! Austerity Forever!

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread