This just in

Higher taxes drag down the economy; where has this story been?

  • Follow Editorials

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 this week.

“The Conference Board said Tuesday 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 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 Mr. 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. How does that work?

Instead, we’ve had another abject lesson in basic economics: If you want less of something, tax it. In this case, taxing workers means they are able to spend less, creating a drag on an already fragile economy.

A report out Wednesday indicated the economy actually shrank 0.1 percent in the fourth quarter of 2012. Again, that has now been followed by higher taxes on workers in January, which has led to a plunge in consumer confidence and, no doubt, spending.

“The surprise contraction,” says another AP article, “could raise fears about the economy’s ability to handle tax increases that took effect in January and looming spending cuts.”

Smooth move, Washington!

The payroll tax increase is supposed to go to your Social Security retirement fund. Theoretically, that’s a good thing. But in reality, there is no retirement fund: Washington has been looting Social Security for decades to pay for ongoing government spending (which your boss would be put in prison for if he or she tried that at work). So, it’s not really an investment in your future; it’s just another dollar for Washington.

And at a time when workers need every cent they can keep.

This just in: Higher taxes slow the economy.

Surprise!

Comments (32) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
Humble Angela
41338
Points
Humble Angela 02/01/13 - 01:46 pm
4
3
This sums up modern
Unpublished

This sums up modern liberalism fairly well.

http://www.youtube.com/watch?v=vkOElRDmwoU

Bizkit
31329
Points
Bizkit 02/01/13 - 02:22 pm
2
2
I thought it was a Rep who

I thought it was a Rep who sponsered the 2011 extension of the Holiday? I'll check out the voting record too when I have a chance.

carcraft
25803
Points
carcraft 02/01/13 - 02:24 pm
5
2
dahreese- I do believe a

dahreese- I do believe a greater percentage of Republicans voted for the civil rights act than Democrats. Oh well revisionism is alive and well. I do believe Old Abe was a Republican. Lets see, Fulbright Racist, Bird a grand wizard of the Klan, Al Gore's Father racists. All Democrats! Look at the list of southern racists in the 50's and 60's, all Democrats!

Gary Ross
3346
Points
Gary Ross 02/01/13 - 02:32 pm
4
3
So much to say, but what's the point?

I'm sick of this obama-world. The man is a pathological liar with an agenda to destroy this country, and yet the majority approve. I think I'm going to throw up...

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:43 pm
4
3
OJP
6634
Points
OJP 02/01/13 - 02:54 pm
5
5
I agree that this editorial is very intellectually dishonest.

(1) This is the termination of a tax break (courtesy of Obama), not a new tax; and

(2) Obama wanted to extend it, but the GOP wouldn't let him.

I understand approaching everything with a right-leaning ideology but this is just misinformation. Tsk tsk.

ETA: The holiday was a bad idea to begin with, in my opinion. But it's not a tax increase, it's the termination of a tax break - courtesy of the GOP.

Darby
25614
Points
Darby 02/01/13 - 02:45 pm
4
4
"If you are not aware of the Republican opposition

to extending the SS payroll tax holiday, I guess that just makes you another "low information voter.""

Or looking at it from another point of view, it makes you impervious to liberal dogma and misinformation.

dahreese
4717
Points
dahreese 02/01/13 - 02:47 pm
3
4
@Humble Angela
Unpublished

"Is it conservatives or liberals who are leading the fight for "openess" of the internet; who are opposing illegal spying on Americans via the FBI, the CIA, Homeland Security? "

Are you talking about Obama renewing the Patriot act, or his proposed drone program in the US?

>Neither Obama nor Bush (under whom these programs began) are the issue, nor the question.

>The question is, Is it conservatives or liberals who are leading the fight for "openess" of the internet; who are opposing illegal spying on Americans via the FBI, the CIA, Homeland Security?
------------------------------------------------------------------------------
"Tell me, has it been liberals or conservatives who've led the way for public education, for women's sufferage, for equal pay for women, opposed child labor, who led the way for public education, who led the way for equal rights for African-Americans? "

Well for starters, public education is an expansion of government. Not sure why you would include that.

>"For starters...."

>And since you've isolated public education (and, yes, public education is an expansion under Section 8 of the Constituion to "provide for the general welfare." And that leaves out '... for women's sufferage, for equal pay for women, opposed child labor, who led the way for public education, who led the way for equal rights for African-Americans? "
-----------------------------------------------------------------------------
"Is it conservatives or liberals who have led the fight for "openess" as to "why" this country is always at war (political party aside)."

Most transparent administration ever? HAHAHAHAHAHA

>I do believe I stated 'political party aside.'

>The question is, '"Is it conservatives or liberals who have led the fight for "openess" as to "why" this country is always at war...?'

>Also, the policies of the present "Most transparent administration ever" began under GWB.
-----------------------------------------------------------------------------
"Tell me, your being a female(?), how many conservative ideas about "a woman's place" do you support, and practice?"

I don't even know what that statement is supposed to mean. And yes I'm a female.

>Sure, you do. Conservatives still see women as inferior to men; in the work place, in society, in the church, in politics.

>"The bible says...." Read Paul....

>That women are no longer "expected" to be in the home and subservient to their husbands is a liberal viewpoint and act, not a conservative one.

>Conservative views of late seem to blame a women if she is raped. Yet it is Democrats who are leading the way of the "Violence Against Women Act."

>Do you support those conservative policies that keep women as secondary to men, or are you a liberal and see women's rights as equal to men?

You know exactly what I'm talking about.

Darby
25614
Points
Darby 02/01/13 - 02:49 pm
6
2
"I do believe a greater percentage of ....

Republicans voted for the civil rights act than Democrats. "

That's just the tip of that political iceberg. The entire bill was guided through Congress by a Republican Senator named Dirksen. He did it for Lyndon Johnson because of Democrat opposition. LBJ couldn't find a Democrat in the entire congress with the will and determination to do the job.

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:50 pm
5
3
"Most transparent
Unpublished

"Most transparent administration ever? HAHAHAHAHAHA

>I do believe I stated 'political party aside.'"

Where did I mention party?

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:51 pm
5
3
"Also, the policies of the
Unpublished

"Also, the policies of the present "Most transparent administration ever" began under GWB."

Still Bush's fault? Really? Bush did it, so it's ok?

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:52 pm
5
3
"Conservatives still see
Unpublished

"Conservatives still see women as inferior to men; in the work place, in society, in the church, in politics."

Really.....I'm not conservative? Palin isn't conservative? My husband isn't conservative? Try talking about what you actually know about next time.

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:53 pm
5
3
"Do you support those
Unpublished

"Do you support those conservative policies that keep women as secondary to men, or are you a liberal and see women's rights as equal to men?"

Name those policies, and why you consider them "conservative."

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:54 pm
5
3
Name a conservative that
Unpublished

Name a conservative that blames a woman if she is raped....and using your stipulation, political party aside.

dahreese
4717
Points
dahreese 02/01/13 - 02:56 pm
3
5
@Carcraft
Unpublished

"dahreese- I do believe a greater percentage of Republicans voted for the civil rights act than Democrats."

I haven't argued Democrats vs Republicans.

I've stated liberals vs conservatives.

As I stated to Angela, above, it is the Democratic senate leading support for women.

(And that just a few moments ago, voted to support an act opposing violence against women. We'll see what the Republican house will do).

Humble Angela
41338
Points
Humble Angela 02/01/13 - 02:58 pm
5
3
And by the way, being a
Unpublished

And by the way, being a Constitutionalist, I too am against the "Violence Against Women Act." It violates equal protection under the law by having harsher penalties for violence against one group of people than over another group of people. Same thing goes for so called "hate crimes."

Humble Angela
41338
Points
Humble Angela 02/01/13 - 03:00 pm
6
3
OMG...I can't stop
Unpublished

OMG...I can't stop laughing!!!

"I haven't argued Democrats vs Republicans.
I've stated liberals vs conservatives."

IMMEDIATELY FOLLOWED BY

"As I stated to Angela, above, it is the Democratic senate leading support for women."

Braw haw haw haw haw!!!

dahreese
4717
Points
dahreese 02/01/13 - 03:04 pm
3
5
@Humble Angela
Unpublished

"Name a conservative that blames a woman if she is raped....and using your stipulation, political party aside."

I thought you'd never ask....

http://www.rawstory.com/rs/2013/01/25/new-republican-idea-punishing-rape...

http://www.rawstory.com/rs/2013/01/29/caught-attacking-rape-victims-rep-...

"Name those policies, and why you consider them "conservative."

>Better yet, why don't you name those policies and why you don't consider them conservative.

Humble Angela
41338
Points
Humble Angela 02/01/13 - 03:10 pm
5
3
For starters...I asked you to
Unpublished

For starters...I asked you to NOT use party affiliation.....just as you did with me....so I'll dismiss YOUR post on the same grounds.

As for the policies. Your question was "Do you support those conservative policies that keep women as secondary to men, or are you a liberal and see women's rights as equal to men?"....I don't know of any conservative policies that keep women as secondary to men....that is why I asked YOU. Are you asking me to read your mind?

dahreese
4717
Points
dahreese 02/01/13 - 03:53 pm
2
6
@Humble Angela
Unpublished

"For starters...I asked you to NOT use party affiliation.....just as you did with me....so I'll dismiss YOUR post on the same grounds."

Dismiss the post all you want. The fact is that this woman is expressing a conservative policy against women, and just "happens" to be a Republican.

"I too am against the "Violence Against Women Act." It violates equal protection under the law by having harsher penalties for violence against one group of people than over another group of people."

Really?

And who would that group be?

And "now" you're a "Constitutionalist?"

Humble Angela
41338
Points
Humble Angela 02/01/13 - 04:16 pm
6
2
"And who would that group
Unpublished

"And who would that group be?" ........uh women? That's why it's not called the "violence against people act."

"And "now" you're a "Constitutionalist?"" ...... no, not now....I always have been.

Funny how party affiliation is applicable when you try to make a point, but not for anyone else....see above post where I can't stop laughing!!

carcraft
25803
Points
carcraft 02/01/13 - 04:49 pm
5
2
Obama , a liberal, has

Obama , a liberal, has refused more freeedom of information requests than Bush. Liberals are always talking about the fairness doctrine, meaning conservative talk shows would be required to have equal amounts of liberal nonsense! So please!!

carcraft
25803
Points
carcraft 02/01/13 - 04:52 pm
6
2
Democrats talk a good talk

Democrats talk a good talk but don't walk the walk, When Ted Kennedy was running around and Billy Clinton was so unseemly nobody seemed to care, now it is all about women or is it really abouot expanding government ans entitlements?

Bizkit
31329
Points
Bizkit 02/01/13 - 09:32 pm
5
2
Well less look at the facts

Crap I had posted the wrong window and law. All these bills are related on the site. So much for my multitasking skills.
Here is the correct data-which supports my posit.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Senate Dem 43 y 13 n
Rep 37 y 5 n
House Dem 139 y 112 n
Rep 138 y 35 n
So actually more Dems didn't support the bill in both house of Congress and my posit still holds. In any case the posit no Rep supported is was false.
Obama, Dems,nor Rep wanted to extend this Holiday.

Bizkit
31329
Points
Bizkit 02/01/13 - 06:10 pm
4
2
Seems some just use MSNBC

Seems some just use MSNBC talking points. Listen Lil'Pravda will mislead you so beware because you'll be saying no Rep voted for something.

rmwhitley
5547
Points
rmwhitley 02/01/13 - 06:19 pm
0
0
All you lefties
Unpublished

count your ( really hard working Tea Party members) money at the start of 2014. You'll be blaming the minority for your misguided expenditures that are going to spiral into a massive Depression. Your "leader" will blame the disaster that you created on people that "told you so".

dichotomy
32906
Points
dichotomy 02/01/13 - 06:37 pm
5
2
In another IRS

In another IRS ruling......the tax credits/subsidies under Obamacare that were intended to help workers with the cost of their health insurance......turns out it only applies to the cost of an individual policy......will not apply to the extra cost of the premiums for a family policy. They anticipate a lot of spouses and children to still be uninsured.

Oh well, you just HAD TO PASS IT TO FIND OUT WHAT WAS IN IT.

Bizkit
31329
Points
Bizkit 02/01/13 - 07:13 pm
4
2
During the Fiscal Cliff talks

During the Fiscal Cliff talks neither Rep or Dems wanted to continue with the Payrole tax break. But of couse these misinformed people believed for years that the Bush Tax Breaks were ONLY for those "evil" wealthy people. They support politicians who will vote for a bill without reading it-which is just criminal-we could be like the Venezuela by now-oh wow was that in the bill-dang I guess Obama is now dictator. Who knew:)????

dahreese
4717
Points
dahreese 02/01/13 - 07:14 pm
2
4
"Funny how party affiliation
Unpublished

"Funny how party affiliation is applicable when you try to make a point, but not for anyone else....see above post where I can't stop laughing!!"

Laugh away. I've said nothing about party affiliation, yours in particular.

And although I am interpreted to be by you and the ultra-conservatives here (and most are "ultra" and don't know it, apparently) I'm nowhere near being a Democrat.

Liberal, yes.

Democrat, no.

And it's obvious that most conservative posters here, you included, rarely venture away from the corporate news of MSNBC, CNN, FOX, ABC and whatever else is on the tube (I don't have one), and the Augusta Chronicle.

And this, ""I too am against the "Violence Against Women Act." It violates equal protection under the law by having harsher penalties for violence against one group of people than over another group of people....

Pulleeezzzzzeee!

Humble Angela
41338
Points
Humble Angela 02/01/13 - 07:27 pm
3
3
dahreese....is that really
Unpublished

dahreese....is that really the best you have? Attack people you don't know by divining where they get their news, and claiming you didn't say things that you did say?

And how about this.....

"And although I am interpreted to be by you and the ultra-conservatives here (and most are "ultra" and don't know it, apparently) I'm nowhere near being a Democrat."

Checking again.....nope...I never said you were a democrat.

Instead of just saying "pulleeezzzzzeee" how about answer the question of how does a law that only covers violence against women does NOT violate equal protection. Why isn't the same violence against men covered? What's wrong with violence against people.

Try to be civil, avoid the name calling and attacks and give answering the question a try.

Back to Top

Top headlines

'Go Downtown' initiative gets mixed reviews

The "Go Downtown" initiative aims to foster a downtown environment that welcomes the college community and creates business for merchants. The event is held every third Thursday of the month ...
Search Augusta jobs