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DonViejo

(60,536 posts) Sat Jan 12, 2013, 12:51 PM Jan 2013

Americans feel austerity's bite as payroll taxes rise [View all]

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

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Americans feel austerity's bite as payroll taxes rise [View all] DonViejo Jan 2013 OP

We all need to pull together... SHRED Jan 2013 #1

The problem is the phrase "payroll tax". It's not a "tax", it's a contribution to your retirement alberg Jan 2013 #17

Bullshit NYC_SKP Jan 2013 #2

Yup. Exactly. djean111 Jan 2013 #4

Nope, go back to 4.2% rate, but lift SS tax and apply to capital gains SWTORFanatic Jan 2013 #7

Of course you are right - but djean111 Jan 2013 #19

Yep, utter BS... awoke_in_2003 Jan 2013 #30

Expiration of a temporary gift does not equal austerity. aintitfunny Jan 2013 #3

Temporary gifts like the Bush tax cuts? dkf Jan 2013 #5

Those should end too. 2ndAmForComputers Jan 2013 #13

Long term temporary! aintitfunny Jan 2013 #31

The guy's making $6000 a month after taxes and complaining about $30 a week? Tempest Jan 2013 #6

Right, And His Gross Is $78,000 Per Year DallasNE Jan 2013 #12

that`s more than two years gross for my wife and i madrchsod Jan 2013 #20

Sounds like he spends everything he earns. Sad. dkf Jan 2013 #14

That seems to be the case high density Jan 2013 #27

He's a Republican in his heart if not on the voter rolls. JDPriestly Jan 2013 #15

He is making $6000 a month before taxes. former9thward Jan 2013 #23

That doesn't sound right Tempest Jan 2013 #24

My error. I meant $6000 a month assuming 4 week months. former9thward Jan 2013 #25

My boss did a round of raises to compensate bhikkhu Jan 2013 #8

Oh PLEASE it is only SS going back to where littlewolf Jan 2013 #9

hey asshole, you should have been putting 30 bucks in a saving account pasto76 Jan 2013 #10

I've noticed a lot of this Reich-Wanker Propaganda lately formercia Jan 2013 #11

Never should have been cut in the first place. If anything, the cap needs to be raised! LoisB Jan 2013 #16

I haven't spent money at a restaurant or movie in a couple of years lunatica Jan 2013 #18

Not sure why you thought it appropriate to post this without comment. But, you know..... Tarheel_Dem Jan 2013 #21

30$ I'm not going to spend at a restaurant obama2terms Jan 2013 #22

I must say, that as little as I currently earn, SheilaT Jan 2013 #26

goes to show the 2 year long Obama 'tax holiday' stimulus did pump $ into the economy Sunlei Jan 2013 #28

Everything's going according to plan. blkmusclmachine Jan 2013 #29