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Surprise! The Payroll Tax Hike Obliterated an Entire Year’s Worth of Wage Gains

Jan. 8, 2013 2:44pm Becket Adams

The Senate-backed “fiscal cliff” bill that managed to pass both chambers last week failed to reinstate the payroll tax holiday, TheBlaze reported at the time.

Consequently, everyone will see their taxes go up. In fact, as Brad Plummer of the Washington Post points out, the payroll tax hike (which is technically returning the tax to its previous rate of 6.2 percent, up from its temporary rate of 4.2 percent), will completely wipe out an entire year’s worth of wage gains:

Surprise! The Payroll Tax Hike Obliterated an Entire Years Worth of Wage Gains

Courtesy Credit Suisse

From Credit Suisse [via the Financial Times]:

We look at average weekly earnings of all employees on private non-farm payrolls: $818.69 in December. The 2% payroll tax increase clips $16.37 a week from take-home pay. … That’s the equivalent of losing all the 2012 gain in weekly earnings in one month.

Obviously, with shrinking paychecks and less take-home pay, Americans are expected to spend a whole lot less this year. This could put a serious hurt on an already struggling U.S. economy.

“The New York Fed’s survey data found that the payroll tax cut has been a particularly efficient form of stimulus over the past two years — Americans reported spending between 28 and 43 percent of the savings, far more than they have for previous tax cuts,” Plummer explains.

“And most workers expect to cut back on spending significantly now that the payroll tax cut is vanishing. The average household making $50,000 a year will see its payroll taxes rise about $1,000 this year,” he adds.

The typical household is expected to reduce spending by about $710 this year to counter the effects of the expiration of the payroll tax holiday, the New York Fed’s survey data shows.

Whether or not Americans will actually cut back on their spending due to the tax hike is uncertain. What we do know, however, is that a) everyone’s taxes are going up and b) the increase has done away with an entire year’s worth of wage gains.

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Featured image courtesy Getty Images.

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Comments (134)

joarivera
Posted on January 8, 2013 at 3:22pm
Will that sucks. There goes my 2% raise.

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- Izzy383
  Posted on January 8, 2013 at 4:15pm
  but but but…I thought he only wanted to raise taxes on those making over $250,000 a year. This must be some kind of mistake.
  
  (anyone know how to convert an eyeroll to text?)
  
  Report this comment
- midnightsun
  Posted on January 8, 2013 at 4:18pm
  Yup, just got my 2% raise also so now it’s gone! Will probably do away with Dish, cut back on food, start using candles instead of lights to keep the electric bill down!!!
  
  Report this comment
- JRook
  Posted on January 8, 2013 at 4:49pm
  Unfortunately typical moronic argument. The author and many here constantly argue that SS and Medicare are a contributor to the federal debt, even though both trust funds are solvent at present. They are of course holding IOU’s from the federal government due to past spending on everything from the Military to foreign aid to the wars in Iraq and Afghanistan that were not funded. The payroll tax is earmarked for SS and Medicare. The reason those programs are in trouble is because the retiring baby boomers did not pay an amount into them that funds the benefits they are receiving. Take the time to review the findings of Regan’s commission on SS and Medicare….. then present us with a well thought out position.
  
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- Keatonc33
  Posted on January 8, 2013 at 5:49pm
  midnightsun…”Yup, just got my 2% raise also so now it’s gone! Will probably do away with Dish, cut back on food, start using candles instead of lights to keep the electric bill down!!!”
  
  so your going to cut back because your making the same amount as last year?
  
  Report this comment
- Keatonc33
  Posted on January 8, 2013 at 5:59pm
  Obama, returning the 98% to the same tax rate they had under George W Bush…. what an A**!
  
  Report this comment
- Keatonc33
  Posted on January 8, 2013 at 6:00pm
  Amen Jrook!
  
  Report this comment
- prairieprof
  Posted on January 8, 2013 at 6:11pm
  My 1.5% raise is gove with my extra contribution of .5% to make up the taxes. Making my own bread, stocked up on powdered milk and training my German Shepherd pup just in case. Just saying . . . I hope everyone else is prepared! Now I need the barrels to store my water. Glad I live by a stream.
  
  Report this comment
- decendentof56
  Posted on January 8, 2013 at 6:14pm
  JROOK……
  You are not mentioning public-housing, wic, food stamps, free breakfast/lunch at school, and all the illegals who receive the aforementioned freebies, plus their free medical services.
  Oh…let us not forget the additional expenses at school for those free-loaders. At a school where my daughter taught early-learning (4 y/o’s), the local district added a new ‘wing’ to provide the free day-care. 14 classrooms/ 14 teachers /14 teachers aide’s/ additional maintenance personnel/ supplies/ furniture (desks)/ an assistant-admin, and…don’t forget that cost of maintaining that new ‘wing’, which is bigger than the grammer-school I went to. BTW, most of the “students” are Mexican, many of which are illegal.
  
  Another thing to consider about spending…the town where this school is has trash equivalent to a town with 70,000, according to Waste
  
  Report this comment
- Granny58
  Posted on January 8, 2013 at 6:31pm
  Yeah, and I got NO raise because I’m in a profession that is being phased out due to Obamacare! Double whammy.
  
  Report this comment
- Jim S
  Posted on January 8, 2013 at 7:36pm
  ..the American voter has spoken…”we” wanted this…and we shall enjoy…and remember Ds and Rs voted for this…
  
  Report this comment
- TheBurningTruth
  Posted on January 8, 2013 at 8:14pm
  JROOK has been drinking the Koolaid again.
  
  Reitrees ON AVERAGE and high income earnings more so DO pay in as much as the get out.
  
  Whenever you hear this argument or see figures, they always conveniently leave out several key points:
  
  1) Payroll taxes are collected over as much as 40 years. Dollars taxed 40 years ago are worth as much as 4x what they are today. Older contributions need to be adjusted to today’s dollars as that’s what todays’ benefits are paid in;
  2) The govt collected TWICE any published number because the employer contributes just as much as the employee did. SSI got those dollars for our “accounts” (accounts, what a joke) but NEVER admit that funding;
  3) All those payroll taxes were “invested” in US Teasuries right? Then they should have grown by a compouned average 5% (historical long term treasury rate) for most of those 40 years. Where did that funding go?
  4) Payroll taxes pay for a lot more than just retirees. There are a whole host of programs paid by Social Insecurity that are funded by the payroll tax that do NOT go to the retirees;
  5) When SS was introduced in 1936, the retiree age of 65 was within a year of the average lifetime. In essence, the system was built around half the workers DYING before collecting. Of course, it wasn’t publicly admitted that half of everyone would pay into a system and never collect from it. Even today, there are many many people that pay in and NEVER collect. Where does the funding for
  
  Report this comment
- HappyConservative
  Posted on January 8, 2013 at 10:23pm
  Obama sucks – I hope he’s put out of commission, and then Biden drinks himself into oblivion and SOMEONE steps in – God save us- from the taxing Demoncraps!!
  
  Report this comment
- LIBERTARIAN T38
  Posted on January 8, 2013 at 11:13pm
  I get such a kick out of the libs in discussions like this. It’s battered wife syndrome: “He loves me! He never did anything wrong! He hits me because he cares!” They think Obama wants the economy to get better…just needs more time to prove liberalism works…raising taxes creates jobs! LOL. When unemployment/welfare/disability (they are now one because of the Dems’ economic policy of moving people from work to unemployment and then welfare and disability) hits 30%, they’ll still be blaming Bush and defending Obama…in 2020 even…hahahaha…what should we call Obama’s economic policy? Unemployfareability?
  
  Report this comment
- missdagnytaggart
  Posted on January 9, 2013 at 12:39am
  You’re right, 65 is the new 40. There’s a lot more people living longer if social security is to be kept around the age at which one can begin receiving benefits will need to be raised to 75 or 80. Of course, it never should have existed in the first place and if I could opt out of it I would in a heartbeat. It’s not the governments job to fund my retirement.
  
  Report this comment
- Southerner01
  Posted on January 9, 2013 at 12:58am
  Lucky you! Nobody at my employer got any raise, plus our insurance went up. This just adds insult to injury.
  
  Report this comment
- WATER-THE-TREE
  Posted on January 9, 2013 at 5:10am
  Why would anyone vote for a man who said he would cut the national debt by half in 4 years and THEN INCREASE THE DEBT BY THE AMOUNT HE SAID HE WOULD CUT IT!!!!! Bammy does the exact opposite of what he says he will do. WAKE UP! He also says he will not take our guns!!!!
  
  Report this comment
- Obama Been Lauding
  Posted on January 9, 2013 at 6:02am
  Decendantof56,
  You are hitting the nail on the head!!!
  One of the biggest problems in this country is the “Illegal Alien” invasion of our economy/budget!!!
  If you read, or know, the oath taken by Senators, Representatives, Military, etc., it states: “protect against all enemies, Foreign and Domestic”. Well, these people are here “Illegally”, and are enemies of our economy.
  You stated the obvious, but you left out the $4+ Billion in Child Tax Credits, for “Illegals”!
  They are draining this country, while we have homeless and working poor, that do not qualify for all of the “Freebies” these bloodsuckers do!!!
  Protect the Border, like in South Korea, then there can be a discussion about allowing a few of these people stay in the U.S.A.
  
  Report this comment
- stage9
  Posted on January 9, 2013 at 8:40am
  We are being governed by idiots.
  
  Report this comment
- copatriots
  Posted on January 9, 2013 at 9:05am
  And trolled by idiots too……
  
  Report this comment
- firman
  Posted on January 9, 2013 at 10:02am
  What raise? Haven’t had one in 3 yrs. My employer pays NOTHING towards my healthcare( been there 30+yrs.) Just loss our bonuses and 401k and one week of vacation. They continue to increase their own pay( I am the financial admin.) by cutting our benefits and freezing our wages. They just “pass the buck”. In this economy, it’s not too easy to just go get a job somewhere else and they know it. These politicians don’t seem to get that taxing the rich indirectly hurts the middle class.
  
  Report this comment
- MIBUGNU2
  Posted on January 9, 2013 at 11:24am
  Could this be added to the ten page list of Obama Lies ???
  “Your taxes won’t go up one thin dime”….if you make less
  than $250,000.00″.. Yep’ he’s a lying BASTAR* !!!!!!!!!!!!!!!
  
  Report this comment
- LIBERTARIAN T38
  Posted on January 9, 2013 at 11:52am
  But firman, they do….
  
  Report this comment
- sURFNmADNESS
  Posted on January 9, 2013 at 8:55pm
  At least you got one last year. I was told no raises per cost cutting. Now looks like I get to work 2 years for a 2% cut now. So ticked I should not post anymore here.
  
  Report this comment
progressiveslayer
Posted on January 8, 2013 at 3:17pm
The Marxist POS probably can’t believe his plan is working so well because his regime is destroying wealth in the private sector and expanding the public sector. We’re in for some very rough times with that Marxist lunatic.

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- jcldwl
  Posted on January 8, 2013 at 3:27pm
  You are so right. I try to imagine what it will be like but it’s hard to do. So, I just prepare.
  
  Report this comment
- Deuteronomy22
  Posted on January 8, 2013 at 3:42pm
  The stock market (private wealth), corporate profits and their cash reserves and the wealth of the top 1% are up significantly since 2008. How in the world can you claim private wealth is being destroyed? As has been the case since Reagan it is only middle class wealth that is being lost. Workers share of business income is at the lowest levels ever. There is plenty of private wealth being created but not for the 99%. Get your head out of the dark place you have it buried in and stop listening to right wing propaganda. Heck the Koch brothers, Obama’s top financial adversary doubled their personal wealth to 40 billion each but still hate Obama. People like that wont be apply until they have it all and the rest f us exist to serve them.
  
  Report this comment
- AvengerK
  Posted on January 8, 2013 at 3:44pm
  Just like Barack Obama..every lefty troll that infests these boards doesn’t give a d@mn about this. None of them..JZS/METEORS, MONICNE/ENCINOM/SLEAZY HIPPO/KREGNEVA, WANGO/YOURSENSEI/HORSEDANCER/PANTLOADIAN/GLENNDA, JROOK, CANADA ROCKS…give a rat’s arse about this appalling number.
  Obama wants more taxes, he believes two things, that he can fund his expansion of government and reduce the debt both by imposing higher and more taxes on the American people. He made it clear to Boehner, Washington doesn’t have a spending problem, rather America has a healthcare problem. Obama is also aware that he has a chance of escaping blame and having his successors deal with his distaster after he’s gone thanks to the fawning media, entertainment industry and leftist dominated education system. All Obama cares about right now is making sure that he erases the GOP majority in the House in 2014. That’s his only concern and Obama has already proven that when he’s not beholden to the voter, he’s far more destructive. Imagine what he’ll be like with another Democrat super majority at his beck and call?
  
  Naturally the low-information voters (there really is no other polite way to describe anyone who voted for Obama) had no idea of how destructive and confiscatory Obama’s policies were…they were too busy worrying about how rich and out of touch Romney is, if they can get an abortion and how much Obama understands us.
  
  Report this comment
- Anonymous T. Irrelevant
  Posted on January 8, 2013 at 4:05pm
  AVENGER
  And don’t forget those free Obambam phones, so they can text each other to create riots in malls and rob WalMarts.
  
  Report this comment
- dcgirl
  Posted on January 8, 2013 at 5:14pm
  Avengerk I have another name for an Obama voter – and this is a polite way to say it – teak sucker.
  
  Report this comment
- Keatonc33
  Posted on January 8, 2013 at 5:52pm
  ya restoring 98% of americans to the Tax rates when bush was in office… what a communist POS!!!
  
  Report this comment
- Keatonc33
  Posted on January 8, 2013 at 5:55pm
  and Avengerk.. you really left me off of your list? people don’t get that the 2% that was reinstated was dropped in 2011 as an attempt to kick start the economy. its been done away with because the economy has been growing. it is essentially returning to the bush tax rates for the bottom 98% of us.. thank you President Obama for cutting all of our taxes by 2% for the past two years!
  
  Report this comment
- Keatonc33
  Posted on January 8, 2013 at 5:58pm
  also progressive slayer.. don’t forget this bill was passed through senate with amazing numbers and the GOP controlled house with pretty strong numbers too… so before we get all over Obama why not blame your own guys first.. they let you down. Obama did what his constituents wanted.
  
  Report this comment
- missdagnytaggart
  Posted on January 8, 2013 at 6:39pm
  Hey Deuteronomy- A lot of us have 401k’s invested in the stock market. What mechanism do you think funds private retirement accounts? But wait you’re probably one of those people who wants the government to take care of us from cradle to the grave right?
  
  Report this comment
- LIBERTARIAN T38
  Posted on January 8, 2013 at 11:47pm
  Keister, your last post gives me hope. Maybe you are starting to see the problem is the Rs and Ds, or, are you ready? Drum roll please! THE GOVERNMENT! They’re all corrupt, so we take the fuel away from the fire, which is MONEY! Cut taxes and you cut corruption! What an idea! Thank you! I just thought that up! Wow! Ok, a 6 year old can understand that…
  
  Report this comment
llotus
Posted on January 8, 2013 at 3:11pm
Dems and republicans that were elected by the people for the people. Please get to cracking and write up another one of those things fast. Most working class Americans have not wittnessed The great economy too many are talking about. I went shopping in the mall yesterday and there were NO shoppers. Gotta pay their taxes. Not enough is left to shop for anything. And make it for at least four more years before it runs out. Two ain`t gonna do it.Lotus.

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- oldguy49
  Posted on January 8, 2013 at 3:22pm
  term limits……..and flat tax
  
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Zundfolge
Posted on January 8, 2013 at 3:11pm
So what are these “wage gains” of which you speak?

I got a 10% pay cut November of 2011 and cut to part time for a month and a half in 2012 … and apparently I’m one of the “lucky ones” that still has a job (for the time being anyway … 50/50 chance the company I work for will go out of business in 2013).

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bdandsl
Posted on January 8, 2013 at 3:11pm
We get to work another month out of the year for nothing! Now I work twelve months for seven months wages! Higher taxes [local, state federal], higher health insurance, higher gas and food prices, fewer jobs and a debt and spending problem in DC. Obama’s the man, alright.

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- Voice1percent
  Posted on January 8, 2013 at 10:24pm
  Just up your W2 withholding to the max of 10 deductions for a married couple save that amount and if you have to pay taxes on April 15th pay up if not spend it. On the other hand we could take obummer’s method and spend it rather than save. Then declare bankruptcy what the heck?
  
  Report this comment
HI_Don
Posted on January 8, 2013 at 3:09pm
Heck, I could have told you that and more. I’ve already figured out what the great fiscal cliff tax break got me. I managed to dodge being labeled “Evil non caring Rich need to pay more” by not making the anywhere close to the $400K mark, however somehow the President’s efforts to protect a tax “cut” for the middle income (Political code words for their decision not to allow them to raise, no cut actually was ever on the table for anyone) have resulted in the following:
We all got the 2% wage tax increase (Obama:”I promise there will be no tax increase on the middle class. Let me be clear. You will not see your taxes go up one dime.”)
In the process of having my son finish college in December, I figured I would be ahead. No more college tuition (I was paying it all), He would come off my Health Care since he has his own job and has his own now, so lower rates for me. But I loose the deduction of him as a dependent. But hey – expensive college tuition and books – got to come out ahead next year right? Nope. It’s a wash. I won’t make one more dime next year after taxes as I did last year funding his college. Maybe Obama meant to say “I will not raise the income of the middle class. Let me be clear, the middle class won’t see their take home pay go up one dime.”
I also work for a sector of the workforce that will be hammered next year by Obama’s policies – Military Defense. Guess I can kiss my raise and bonuses goodby as well. And here come higher prices and i

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- objectivetruth
  Posted on January 8, 2013 at 4:08pm
  The only reprieve you have is for your child to get married or turn 24 join the service.You can thank the college loan system and the dept of education for that.Its the most asinine system I have ever seen.The kids can get married take out loans join the service,have children.Yet if they haven’t done any of that you will still have to pay their college tuition.What if the kids nor the parents want them to do any of the aforementioned?Good reasons for not wanting them to get married or have children that young.May not be military material.
  Hint this is another one of the traps they set up years ago to fleece the parent and control the young adult.Hum maybe that answers the madness taking over the campuses.
  
  Report this comment
ArmedAndReallyPissed
Posted on January 8, 2013 at 3:09pm
Heil Obama, mein Führer.

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- YAHSHUARULES
  Posted on January 8, 2013 at 3:11pm
  You gotta see this to believe it!
  http://www.youtube.com/watch?v=EjnUbds-JMU
  
  More of the agenda to use public policy to subvert America from inside, infiltrate and influence our culture driving us in a direction designed to destroy us. . No conspiracy – just verifiable facts! If you don’t know all this you need to find out!
  
  This is the most comprehensive, best movie I have seen pulling all this together. I have watched it 12X to absorb all that is in it…give it 5 minutes and you won’t be able to walk away
  
  Watch it. Share it. Arrange a showing in church, groups, clubs, with friends or family. Everyone who loves America needs to see this movie,
  It is free on line for the moment
  https://vimeo.com/52009124
  If America goes down, the free world will go down with it and it will be finished for a very, very long time…
  
  Report this comment
Exidor
Posted on January 8, 2013 at 3:07pm
Wait until the end of January when everyone sees their pay stub.

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- copatriots
  Posted on January 9, 2013 at 9:14am
  I’ve been saying the same thing for months. The reality (pay)check starts hitting this coming Friday. For others, it will be the 15th. Others at the end of the month. I cannot wait for the liberal idiots to get their wake up call.
  
  Get to work, Libs. It’s time to make the donuts.
  
  Report this comment
sizzlinsexybeckster
Posted on January 8, 2013 at 3:07pm
“Whether or not Americans will actually cut back on their spending due to the tax hike is uncertain. What we do know, however, is that a) everyone’s taxes are going up and b) the increase has done away with an entire year’s worth of wage gains.”

Are the New York Fed’s not American? Shouldn’t the sentence say “we” instead of speaking as if the “Americans” are another form of life separate from them? Or how about “society”? They sure love separating themselves from “Americans”, how about taxing all the billions of illegals here? I’m tired of paying for them.

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Dougral Supports Israel
Posted on January 8, 2013 at 3:05pm
I’m not going to complain about this. Social Security is one program that at least tries to pay for itself. Its still going to have a shortfall but it will be smaller.

If we want real savings though we are going to have to unwind the entitlements. There’s no way to solvency without doing that.

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- americanexile
  Posted on January 8, 2013 at 4:32pm
  Thank goodness someone on this site recognizes that.
  
  Payroll tax IS social security funding. If you don’t want to shell out money for the payroll tax, then don’t expect checks in the mail when you retire.
  
  Report this comment
- LIBERTARIAN T38
  Posted on January 8, 2013 at 11:34pm
  OK, can I opt out of social security then? No. You can keep your social security, I want out. If social security is so great, why are senior citizens eating dog food? Oh, wait, that story is only repeated every day when a Republican is President. Never mind…People were starving to death after running out of children to eat when Bush was President and unemployment soared to 4.7%…everything is so much better now that the government-created secondary mortgage market collapsed and unemployment is down to 12 or 13% (real numbers) and Obama is President. I caught some CBS news tonight: the only thing I have to worry about is not having the government take over the world to stop global warming, according to…the Obama administration! Oh, and if the government doesn’t take away guns we’re doomed. Um, the restaurant calorie figures the government forced them to provide are part of a corporate conspiracy…don’t worry about anything but being free and the private sector. Government good, everything else dangerous! Thanks CBS!
  
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- missdagnytaggart
  Posted on January 9, 2013 at 12:43am
  Wasn’t planning on expecting a check anyway. Got another 40+ years before I can retire and i’m sure the %#%$ will hit the fan before then.
  
  Report this comment
- copatriots
  Posted on January 9, 2013 at 9:20am
  @(Likely collecting SS in)EXILE
  
  As I’m sure you know in your attempt to propagandize, payroll tax encompasses a whole lot more than merely SS. The largest increases in the payroll taxes are what goes to fund the gubbermint.
  
  Report this comment
toiletclogga
Posted on January 8, 2013 at 3:03pm
The Social Security Tax Holiday is over. I just don’t understand why people are making such a big deal over it. Obama should never have instituted this holiday. Do you all see how those with the entitlement mentality get hooked on these government freebies? We’re all hooked on 2% of our income which we should have been paying into Social Security. We have to fund Social Security, and it isn’t going to get done with a tax of 4.3%. It isn’t going to get done with a 6.3% tax either. Be prepared for a significant increase in payroll taxes. Bills are coming due!

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- Zundfolge
  Posted on January 8, 2013 at 3:13pm
  I’d be perfectly happy to opt out of Social Security … and even let them keep what I’ve paid in for the last three decades if it meant I never had to pay them another dime (its not like I’ll ever see any of it back anyway).
  
  Report this comment
- Just_Us2
  Posted on January 8, 2013 at 3:14pm
  The entire tax system is broken. Time for a flat tax. We all know that social security will have to undergo major changes in the future and will be a shadow of what it is today. I would rather have the 2% to invest myself than give it to a corrupt government.
  
  Report this comment
- toiletclogga
  Posted on January 8, 2013 at 3:18pm
  Bush tried to allow the citizens to invest some of this for their own use, but guess who opposed it? Queen Nancy, and her Joker Harry!
  
  Report this comment
- Rajabear1
  Posted on January 8, 2013 at 4:09pm
  Finally! A string of comments I can completely agree with. When this ‘Tax Holiday’ was first trotted out, I warned everyone it was ultimately going to screw us over in several ways. Why would we pull money away from a program going broke just to have everyone feel like they were being ‘ripped off’ when it would be over? SS should have never have been created in the first place, but it is a commitment that should be carried out for those who are too close in age or are currently of age of being dependent on it. After that, it should be phased out for all groups: future retirees, disability, and dependents of people who have passed away. It was never designed for the groups that are now depleting it at astounding levels. Yet, our ‘tax holiday’ was taking it from the one area that has been the most raided and in most need of bolstering for those to whom the original ‘contract’ was intended for-retiree’s that had outlived the life expectancy standard and had no other source of income.
  I am 43 and would also be quite fine with letting go of what I had paid in in order to discontinue the SS programs, and no, I’m in no way rich, not even close to well off. Single mom of 3 kids that struggled (proudly) w/o child support most of the time, but I understand how destructive FDR’s little pet project is to the future of the country, personal freedoms and can and will be used as a weapon to her citizens.
  I too, believe EVERYONE should be paying the same federal tax rate.
  
  Report this comment
- LIBERTARIAN T38
  Posted on January 9, 2013 at 8:09am
  “We’re all hooked on 2% of our income.” Quote of the year, comrade! I laughed out loud. How about 2 years of unemployment and then welfare. Now that’s doing your part for the Party!
  
  Report this comment
makeemstop
Posted on January 8, 2013 at 3:03pm
Let’s see… $710 X 125,000,000 (number of US Households) = $88,750,000,000. No, that’s not going to hurt the economy a single iota. Yes, thats almost 90 Billion with a “B”.

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- toiletclogga
  Posted on January 8, 2013 at 3:13pm
  Multiply that number by 4, and you would see how far short SS contributions have fallen. The US people love SSI, however, they don’t like to fund it. Either do away with the program, or fund it so that those paying into the system now have it later for themselves. This tax holiday should never have occurred, and now that it is over, people are pissed.
  
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- LIBERTARIAN T38
  Posted on January 9, 2013 at 12:00pm
  Toil, you’re onto something….people will vote for liberals, but don’t want to live in the liberal world if they have to be on the paying end…people on welfare will vote and live liberalism evey time. Now you understand moving people from work to welfare by the millions over the last 4 years.
  
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huey6367
Posted on January 8, 2013 at 3:03pm
Only going to tax the upper 2%. Apparently I am the upper 2%. This is great (sarcasm)

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Just_Us2
Posted on January 8, 2013 at 3:02pm
Why do an analysis of this one tax increase? Why not analyze the impact of all of them? It’s not like the average person could base any economic decisions on this report. Show the entire picture and not a few pieces so intelligent decisions can be made.

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- Cavallo
  Posted on January 8, 2013 at 3:16pm
  I think that might be above and beyond the scope of the Blaze. As a metaphoric example, the Blaze only reports on the portion of the ice berg that sticks above water. You’d have to go to a different site to get what lays just under the water line ready to carve a gargantuan hole in your ship.
  
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moreteaplease
Posted on January 8, 2013 at 3:01pm
“Obviously, with shrinking paychecks and less take-home pay, Americans are expected to spend a whole lot less this year. This could put a serious hurt on an already struggling U.S. economy.”
———————————————-
Not the Obama’s; but then again, I don’t consider them to be Americans.

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BehindTheMouth
Posted on January 8, 2013 at 2:58pm
Obama sucks

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- Seagal45
  Posted on January 8, 2013 at 3:12pm
  I agree!
  
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- TIMEBOMB
  Posted on January 8, 2013 at 3:19pm
  I certainly do,everyone who steps into my office. Praise be to me BHO.
  
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- LIBERTARIAN T38
  Posted on January 9, 2013 at 11:03pm
  Thank you Mr. Obvious!
  
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BODYBAG
Posted on January 8, 2013 at 2:58pm
Let me see if I got this right ———-
Feds are irresponsibly blowing money hand over fist on everything under the sun, running up our debt at an historic rate, paying off their friends and cronies and funding their MARXIST schemes, destroying our economy, and stripping us of ALL of our Liberties —–

and now they’re coming for yet MORE money to cover THEIR failures?

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SteelJewel
Posted on January 8, 2013 at 2:57pm
Obamanomics hard at work, taking more of your money, again.

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MyThoughtsAreFree
Posted on January 8, 2013 at 2:56pm
With reductions in my Flex Benefit (cut in half) my taxes are increasing MUCH more than indicated here. And no I’m not the 2% I bearly break 6 figures, well at least I did….

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schroeder123
Posted on January 8, 2013 at 2:53pm
Impeach Obamamama

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Cavallo
Posted on January 8, 2013 at 2:53pm
Welcome to the New Amerika. Just wait until they come for that extra 1 trillion in taxes.

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schroeder123
Posted on January 8, 2013 at 2:52pm
Add your comments

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Snowleopard {gallery of cat folks}
Posted on January 8, 2013 at 2:52pm
No surprise here, and the madness will continue so long as Obama is in office, the Progressives hold onto Congress, and no one stands up for what is right and needs to be done to get the Feds off of the back of the nation.

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- Nancys Red Diaper Doper Babies
  Posted on January 8, 2013 at 4:09pm
  If it’s the only way to get the America I love back then I fully welcome the double dip.
  
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schroeder123
Posted on January 8, 2013 at 2:52pm
Tax the sod in
Which he’s laid…

Put these words
Upon his tomb,
‘Taxes drove me
to my doom…’

When he’s gone,
Do not relax,
Its time to apply
The inheritance tax.

Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge Tax
Social Security Tax

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lynnt10
Posted on January 8, 2013 at 2:49pm
We haven’t even had a cost of living raise in 6 years! And my husband works for the county but is non union. Union county workers all get their raises every year. This tax makes us go in the hole.

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- hauschild
  Posted on January 8, 2013 at 3:21pm
  Oh, really???
  
  Well, I don’t get an exclusive citizen-funded pension when I retire. I also have no job security. The pension that I do get that is citizen-funded, I am paying dearly for, as is my employer. And, if I am fortunate enough to receive any of the funds from it about 10+ years AFTER I officially retire, the amount will be probably around 20% that of a country workers’.
  
  Wanna trade places???
  
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- DesertRose1960
  Posted on January 8, 2013 at 3:27pm
  Hon, if your husband is working for the county, he’s paid the same wages as the union guy right next to him, and he makes more because he isn’t paying union dues. County employee pay is a matter of public record in most places have strict laws prevent the county from paying one worker differently for the same work. If he’s told you different, then he’s lying or he’s not working for the county, he’s on some sort of contract through the county. If he really is being discriminated against, see about filing a grievance agains the county They have to have a policy to deal with discrimination. If you want Social Security to be there when you hit 65, then you need to pay into it. The White House gave workers a tax holiday to help folks like you get through the worst of the recession, but it cost the Government potential revenue to keep funding Social Security.
  
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- AvengerK
  Posted on January 8, 2013 at 3:58pm
  well look at that…far be it from lefty unionista and troll TOKYOROSE to allow anyone to disparage public sector unions.
  By the way “hon”..you were very misleading about Darden Restaurants drop in profits supposedly because of their putting employees on smaller hour shifts because of Obamacare, and certainly not a 37% drop. The public is certainly NOT punishing Darden Restaurants for that, theyv’e had profit shortfalls since 2010. Nice try lefty troll. I didn’t get a chance to refute you on that one the other day.
  While we’re talking about that subject though…. Wendy’s restaurants in Omaha are reducing the hours of their employees, directly as a result of Obamacare.
  
  “Gary Burdette, Vice President of Operations for the local franchise, says the cuts are coming because the new Affordable Health Care Act requires employers to offer health insurance to employees working 32-38 hours a week. Under the current law they are not considered full time and that as a small business owner, he can’t afford to stay in operation and pay for everyone’s health insurance.”. Oh and one of your lefty cohorts already beat you to the reflexive denial act you’re going to try next…
  http://thinkprogress.org/health/2013/01/07/1409841/wendys-obamacare/?mobile=nc
  You’re an idiot DESERTROSE a tax payer bloated, drooling idiot.
  
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- AvengerK
  Posted on January 8, 2013 at 4:01pm
  By the way TOKYOROSE..what do you pay into social security? You work for the government. You are paid in tax payer dollars. You pay nothing to social security, the taxpayer pays it for you.
  
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- dcgirl
  Posted on January 8, 2013 at 5:28pm
  Hauschild – my husband is a retired LEO. He funded his own retirement. It was taken out of his check each pay period. Then it was invested and thank goodness it is fully funded. So you can quick your complaining about “citizen-funded pensions” because they aren’t everywhere. AND if he left before retiring he would get NOT ONE CENT of earnings, only what he put in – there is a downside too remember. .
  
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- Southerner01
  Posted on January 9, 2013 at 6:52am
  Desertrose, you are making a huge assumption that is likely incorrect. While Lynnt’s husband is non-union, it is likely that the job he does is not the same as the unionized jobs. Perhaps he is supervisory or professional and in a category that is all non-union. In such a case, the whole group could get no wage increases while all the unionized employees do.
  
  It’s just like the part of the GM bailout nobody seems to mention. The bailout supposedly “saved” all these union jobs, but they devastated the ranks of engineers, designers and other non-union GM employees, and pretty much stole most of their retirement plan in the process, while the union employees got all of their funded by the taxpayers.
  
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