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Got my paycheck from my on-site job

Posted: Jan 3, 2013

were $20.00 higher than my last paycheck. I sure hope they spend it wisely.

;

Yikes! The warnings were there - but GOP caved anyway.

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!

GOP WANTED the payroll tax increase. Doesn't affect the wealthy - and we do have bills to pay. sm

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This is a tradeoff, those working people who can paying more into the system so that we can pay for such other items as extending the long term unemployment benefit for people who'd otherwise be sleeping under shrubs.

Payroll tax holiday expired - that's probably why

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Payroll taxes fund Social Security.

It's estimated that a couple earning $50,000 a year will see about a $1000 increase per year.

Precisely. I heard NPR today say - it amounts to 2%.

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IMO, if those receiving paychecks pay 2% of the money they actually earn by getting up every day and going to work, those whose money makes money for them should have AT LEAST an additional 2% taxes added to their total incomes to match with their fair share.

fair point, IMO - nm

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I so agree, but GOP would never have agreed to 2% tax - on giant bonuses and buyout packages. :) nm

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x

No big deal. sm - boomer

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I've been paying Social Security taxes since I was 16....over 4 decades. And so what? I expect to be applying for Social Security soon and I will also continue working part-time and contributing to Social security. Don't understand all the hysterical posts. The sky is falling NOT!

I hear ya, boomer. The whining gets really old. - nm

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Yeah, yeah, we have heard it before. If Bush - was in charge, you would object.. nm

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nm

Wrong! I've been against every tax decrease in 40 years - with the deficit EXCEPT those

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meant to keep our economy crashing by increasing disposable (spendable) income, like, most recently, the Obama administration stimulus package.

You know, for lots of us it's about running the country. NOT about choosing people to hate and then mindlessly opposing everything they do.

What causes deficits - um, spending more than you take in - a

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Right now the government takes in a set amount of taxes and they should not be spending more than they take in. They should only increase spending AFTER they take in more tax revenues. Problem with government is that they raise taxes and then increase the spending by more than the additional amount they take in. This has happened over, and over, and over, and over, and over, and over, and over ... again. When are we going to wake up and start holding politicians accountable for their actions. Did anyone notice how Obamacare taxes did not kick in until after the 2012 elections? Do you really think that it is a coincidence?

That's a 5-year-old's idea of economics. Imagine - you're about to drive across Death Valley in

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August, back in 1950 when even the Forest Service stations closed down for the summer. (Yes, a 5-year-old-type example, but...).

Anyway, the next gas is 80 miles, but you only have money for enough to get you, hopefully, maybe, across this inferno to the next station. A nice pump jockey, very worried about you, offers to lend you money for more gas, but you're already in debt and determined not to worsen it.

Under those conditions, someone who refused to spend additional money if added to his debt would quite likely die.

See? Sometimes it's just not that simple--other dynamics and other principles are involved. In fact, almost always. In this case, you also have your 5 small children and great-grandma in the car with you.

To bump it up to a slightly more mature level, a GROWING economy generates more wealth, and thus more tax dollars to pay our bills. Thus, to get the money to pay the bills, it's important to keep the economy growing, and, heaven forbid, not shrinking. This is where we are right now: a place where $1 borrowed and spent today can result in $2 created tomorrow; or conversely, where $1 saved/not spent today can result in the loss of $2 tomorrow.

And it's a thousand times more complex than that in action. That's why we really need to elect smart, educated people and why we're in such bad trouble with the clueless sorts we've too often been falling for.

People make things more complicated - a

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I hear that excuse all the time. Things are complicated. No they are not. What if the federal government were not able to print money like the 46 states that have balanced budget amendents can not? I live in NY, when the budget is not balance, they cut expenditures and lay people off. This deficit was not a surprise. They have had since 2008 to reduce expenditures but they have not. Instead, they added $800 billion to the baseline budget when they passed the horrible stimulus package in 2009. If we just eliminated that $800 billion from the baseline budget, then that deficit would be much more manageable. At this point, my five year old mind knows that there will be a point where we cannot borrow more money, can't print any more money, and there will not be enough people to tax to pay for all the government spending. Then we will see much worse custs in government services. We can cut government spending signficantly. We will adjust our lifestyles to match it. When people make more money they spend more. When people make less money they spend less. We will adjust. However, it is easier to live within our means now than what will happen when we don't.

So many words when the first line defined ignorance - so well. It's all incredibly MORE complicated

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Nothing is simple when you examine it. You think you paid $150K for that house? Did you remember to factor in the opportunity cost of the money? How many different ways? Over what time periods? Different financing options? And we stop there while we're still at a fairly simple level.

Go google "labor elasticity," one little dynamic that's extremely important in your life, and see how well you understand the discussions.

I had four semesters of college economics, and the typical article written for professionals has me in over my head before I'm through the second paragraph.

economics - 6-year-old economist

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IF, and only if, the deficit spending is for infrastructure, such as roads, railroad tracks, sewers, waterworks, etc., and the people who will be paying off the debt also benefit, then you are correct. However, if you are going into debt for current expenses and taxing taxpayers in the future who will derive no benefit it is not going to grow the economy. In fact the economy will be the poorer because the money was not spent on things that would make the economy richer, or invested in private business.

Think of it this way, suppose you are going deeply into debt for expensive restaurant meals, designer clothes that will be out of fashion in a year, extravagant vacations, expensive booze, etc., and then you die and leave your spouse to pay off these debts, and so your children do without. All of this spending has not made you richer. You are in fact making everyone poorer. On the other hand, if you went into debt to pay for a house or something tangible/profitable and you died, this will be passed on to your spouse and children, you have made their lives richer and increased their wealth; not only that but their income is freed up so that it can be spent to benefit the family.

The same principles hold the macroeconomic/national scale. Deficit spending is only moral if the fruits of that spending benefit the people who will be paying for it. So going into debt for 50 years to pay for a new bridge that will stand at least 50 years and is a bridge that will benefit the economy and the quality of life of the people who will be using it is very worthwhile. Going into debt to study the dietary habits of housecats (for example) is not a moral debt and there is no lasting benefit to economy and in fact damages it (not to mention the damage of inflation.) If research is needed to study the dietary habits of housecats then let Purina pay for it, they will if it is beneficial to them -- and thus beneficial to the ecnomy. When you are six, you will understand this better.

Pretty good. Don't forget going into debt to - avert recession/depression by increasing

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personal spending. Investment in a bag of popcorn CAN be what you are considering a "moral" debt.

(BTW, considering the number of cats in this country, it's by no means an automatic given that an undefined study their dietary habits MUST be a waste of money. Purina certainly isn't going to publish research on the adverse effects of pets on public health, for instance.
How many human hospitalizations and deaths might be prevented by requiring shelters to vaccinate for something not required now--or by requiring Purina to clean up ITS act--because of what cats are eating?)

And if you're lucky - the $$ will be there for you

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when you retire. Don't hold your breath, though.

The money is there. I'm semi-retiring the first quarter of 2013. sm - Boomer

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Don't have to hold my breath very long. Also have a private pension from my previous career and my husband has a pension from a 36-year hard-working UNION job.......Time for DH and ME...We both earned it.

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