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Molon Labe
01-11-2013, 11:55 AM
Wonder if the DUmmies have all figured out how letting the payroll tax holiday hurt middle and lower income families the hardest. So much for taking care of the little guys.




The Great Robbery of Wage-Earners (http://www.informationliberation.com/?id=42321)


by Jeffrey Tucker

If you think of American wage-earners as swimmers, they were mostly underwater after 2008. Then last year, wages increased a bit. It was only 2.4% for the year, but it was like coming up for a slight gulp of air.

Now think of Congress and the president as the people in a boat pushing the swimmers’ heads back underwater. That’s exactly what they did when they let the payroll tax arrive on the first day of 2013.

The 2% increase wiped out virtually the whole wage gain for the previous year. It came as a shock to most workers. “There goes my raise,” was the cry heard all over the Web in the first week of the year.

Michael Daneau, who works a lighting store in Rhode Island, posted on his Facebook wall:

“I opened my paycheck today and noticed I got less pay than I usually get on a regular 40 hour week. Obama stole $20 more out of social security. So now I’m back to making what I was making before my last raise. All that hard work paid off! Stick around more hope and change is coming!”
Some follow-up comments:

“My wife is being taxed another $150 a month making less than $40,000. We will likely have to move back to an apartment from our rental house as a result”
“I’ve been drawing two days vacation pay each week since my heart attack in early Dec. One day pays for my weekly insurance premium, the other goes towards my rent. This week, I have a $6 reduction in total net ‘income’…”
“I’ve lost $18 per week”
“I make about $50,000 a year. I will lose approximately $70 a month due to this hike. Someone with a brain, please explain to me why in the hell my taxes should rise when we’ve all seen the nauseating curve of how well the 1% are doing.”
It came as a shock to most people because a payroll tax increase had not really been part of the negotiations. We endured weeks of wall-to-wall coverage of the “fiscal cliff.” It was a brutal and heavily partisan battle. How much spending? How high or low the income tax rates? Either way, only the rich would be hurt, right?

Think again. The payroll tax is the most broad tax in increase, taking a far greater bite out of income than the income tax as such.

But where was the discussion of the payroll tax increase? There were no speeches about it. There was no back and forth between the parties. This is because, says The Washington Post, there was “general agreement” it had to happen. The government provides these programs. They disbursements have already gone out. They must be paid for. You are on the hook, period.

Earlier in the year, when this subject was discussed behind closed doors, The Christian Science Monitor reported:

“Getting Congress to agree to continue the payroll tax cut yet again might have been problematic. Many politicians, from Rep. Nancy Pelosi (D) of California to Sen. Orrin Hatch (R) of Utah, were less than enthusiastic about extending it. That is in part because the money that would have come from wage earners’ pockets for Social Security was coming instead from the U.S. Treasury’s general fund.”
If anything, the Republicans were even slightly warmer to the payroll tax increase. This is because it was the Democrats who made the temporary decrease part of the stimulus package of 2010. The idea back then, inspired by Keynesian-style theory, was that by letting workers keep more of their money, they would spend more money and thereby increase aggregate demand, which supposedly addresses the key to why the economy is faltering.

Republicans traditionally favor a more supply-side solution. They want tax changes that benefit producers and investors, based on the idea that what is causing the economy to falter is a lack of real investment. They, as much as the Democrats, see the tax system as a tool for a different sort of economic stimulus.

Both sides are right, but for the wrong reasons. Whenever private property is transferred away from owners to the government, the prospects for recovery are harmed. The point isn’t to boost either the supply or the demand side, but simply to let people keep more of their money. Whether that money is saved or spent, invested or blown on fripperies, what matters is that economic growth flows from the decisions that people make on their own, and not the decisions that government makes for them.

But people in Washington of either party aren’t very warm to this idea.

Note this for the future: What matters is not what they debate, but that what they together decide should not be discussed at all! This is the real business of government. It’s the issues that the political parties agree on that the public need fear most. This is the area in which the most deadly fleecing occurs.

So it came as something of a shock to millions to see their paychecks slammed by $20-40 every week. Where is that raise I was just granted? How is this even possible?

Another factor here is the following: Ever since the 1940s, the payroll tax has been fobbed off on the public not as a tax, but as an insurance premium for services coming later. You know, like Social Security and Medicare. In the market, we pay premiums for services delivered at a later date all the time. Isn’t this just the same?

Well, it’s not the same. For one thing, these “insurance” programs aren’t insurance at all. They are direct transfers of wealth. Young workers today are paying the bills for the money that retired workers have already spent. That’s not the market at work. That’s pure redistribution.

Another crucial factor here: No one elects to pay these stupid taxes. They are forced on us. And just as a sweet little reminder that this is true, the government prosecuted a prominent case of failure to pay just days after the payroll tax when up.

Fox News reported on Jan. 6:

“An eastern Wisconsin business owner will spend about a year in prison for failing to pay taxes that had been withheld from employees’ wages.

“According to court records, Lisa Bartz Vanden Elzen, co-owner of Dairy Transport Services of De Pere, failed to pay about $193,000 in payroll taxes. She’s also accused of failing to pay the Internal Revenue Service $81,000, the employer’s matching share of those taxes.

“The Green Bay Press-Gazette reports the 47-year-old was found guilty in U.S. District Court of failing to pay payroll taxes that had been withheld from employee wages from July 2005-December 2010.

“She was sentenced to 366 days in prison and ordered to pay restitution of $274,000 for federal tax violations.”
The message is that the government means business. You may not refuse its benevolence. If you do, you will go to jail. There is no way out. They’ve got the guns.

But of course, you can push people only so far. The growth of the informal sector continues, and this sneaky little robbery is going to push more people into the role of noncompliance, choosing modes of living that avoid the official system altogether and living on a cash basis, using modern financial tools like anonymous debit cards to make doing so more efficient than ever.

Washington tells us constantly that they are looking after our best interests and want to stimulate the economy toward recovery. This little caper is the best and clearest evidence I’ve seen in recent days that this is not the case. What Washington really wants is more of your money.
_
Jeffrey Tucker is the publisher and executive editor of Laissez-Faire Books

Rockntractor
01-11-2013, 12:00 PM
Molon, who did you vote for for president?

Molon Labe
01-11-2013, 12:09 PM
Molon, who did you vote for for president?

I stayed home and watched you dorks vote for "Obama lite" remember?

BTW This tax was in place under Bush.

Novaheart
01-11-2013, 12:17 PM
Molon, who did you vote for for president?

IS there something magic about Republicans in this regard? Where would the SS/Medicare funds come from under a Republican?

Rockntractor
01-11-2013, 12:21 PM
I stayed home and watched you dorks vote for "Obama lite" remember?

BTW This tax was in place under Bush.

credibility.
http://i686.photobucket.com/albums/vv230/upyourstruly/circle-the-drain.jpg

Rockntractor
01-11-2013, 12:22 PM
IS there something magic about Republicans in this regard? Where would the SS/Medicare funds come from under a Republican?

Both of you can enjoy your new dicktator.

Molon Labe
01-11-2013, 12:27 PM
Both of you can enjoy your new dicktator.

Obama = Bush. The tax was put in place under him. Short memory and Cognitive dissonance.

He's your new dictator too. lol... When you nominate a libtard loser, you are to blame. :biggrin-new:

Molon Labe
01-11-2013, 12:28 PM
IS there something magic about Republicans in this regard? Where would the SS/Medicare funds come from under a Republican?

Hows' your boy helping the poor and middle class again?

FlaGator
01-11-2013, 12:50 PM
I stayed home and watched you dorks vote for "Obama lite" remember?

BTW This tax was in place under Bush.

Doesn't make much sense to point out the failings of Obama when you aided and abetted him.

To paraphrase Asimov:

Did you vote for Obama or by inaction allow Obama to retain the Presidency?

Molon Labe
01-11-2013, 01:05 PM
Doesn't make much sense to point out the failings of Obama when you aided and abetted him.

To paraphrase Asimov:

Did you vote for Obama or by inaction allow Obama to retain the Presidency?

I no more did than the foolish ones who nominated someone who could not beat him and betrayed Conservativism.

Rockntractor
01-11-2013, 01:08 PM
I no more did than the foolish ones who nominated someone who could not beat him and betrayed Conservativism.

http://i686.photobucket.com/albums/vv230/upyourstruly/spock_does_not_approve.jpg

Molon Labe
01-11-2013, 01:14 PM
http://i686.photobucket.com/albums/vv230/upyourstruly/spock_does_not_approve.jpg

since you derailed the thread why not continue.

http://www.troll.me/images/willy-wonka-gene-wilder/so-you-voted-for-romney-to-beat-obama-how-does-it-feel-picking-the-white-guy-that-wont-be-any-different-lol-thumb.jpg

NJCardFan
01-11-2013, 01:14 PM
I no more did than the foolish ones who nominated someone who could not beat him and betrayed Conservativism.

So in other words you were willing to allow Obama to get re-elected so he can pursue his uber leftist agenda unchecked in order to show yourself to be morally superior. Thanks guy. Thanks to people like you, we are now on a fast track to destruction. But now you're trying to make yourself feel better by saying that a Romney administration would have been no different than Obama. You couldn't be more wrong.

marv
01-11-2013, 01:15 PM
Ah, but there's the extention of unemployment bennies. That'll put stimulus money back into the economy, won't it?

Uhhh, it might put money into pockets for a while, but the loss of productivity by people not working has the combined effect of more wealth going going down the drain for a net loss to the economy. Shit-for-brains Pelosi said unemployment payments would "create more jobs". In effect, it's Obama and the Democrats saying that your labors aren't worth crap! Anybody wanna guess why the GDP is going to hell in a hand basket?

And it doesn't take rocket science to figger that out. Even a skool dropout like me can do it! In effect, it's Obama and the Democrats saying that your labors aren't worth shit!

BTW, I have a bridge in Brooklin that I'd like to.........

Molon Labe
01-11-2013, 01:26 PM
So in other words you were willing to allow Obama to get re-elected so he can pursue his uber leftist agenda unchecked in order to show yourself to be morally superior. Thanks guy. Thanks to people like you, we are now on a fast track to destruction. But now you're trying to make yourself feel better by saying that a Romney administration would have been no different than Obama. You couldn't be more wrong.

Republicans have the majority in Congress. They can take action against anything the POTUS does. Why haven't they? Why haven't they signed onto and rammed through the numerous pieces of legislation introduced by legitimate Conservatives repealing this ?

You know why? Because they don't mind raising your taxes either because most of them like their own welfare programs.

Equally complicit in the destruction. But nevermind that right?

Rockntractor
01-11-2013, 01:32 PM
since you derailed the thread why not continue.

http://www.troll.me/images/willy-wonka-gene-wilder/so-you-voted-for-romney-to-beat-obama-how-does-it-feel-picking-the-white-guy-that-wont-be-any-different-lol-thumb.jpg

This is a fallacy, you do not know with certainty what Romney would have done, yet we did with certainty know what Obama would do, and you have the gall to complain about it after sitting on your ass and doing nothing in your power to prevent it.

Rockntractor
01-11-2013, 01:36 PM
since you derailed the thread why not continue.



http://i686.photobucket.com/albums/vv230/upyourstruly/nP34pDPa1e-16.png

FlaGator
01-11-2013, 01:37 PM
I no more did than the foolish ones who nominated someone who could not beat him and betrayed Conservativism.

In a couple of months from now, I would have much rather be debating the economy's performance (or lack there of) under Romney than the economic destruction of Obama. If a few people would have put their personal bias aside and made getting rid of Obama the main task at hand then things might be different today. You basically put your interests head of the country's. Would Romney done a better job? Don't know. Would Obama wise up, that was a certaintly not going to happen and you knew that on election day.

Novaheart
01-11-2013, 01:46 PM
Republicans have the majority in Congress. They can take action against anything the POTUS does. Why haven't they? Why haven't they signed onto and rammed through the numerous pieces of legislation introduced by legitimate Conservatives repealing this ?

You know why? Because they don't mind raising your taxes either because most of them like their own welfare programs.

Equally complicit in the destruction. But nevermind that right?

Bump for oh no you deh-ent.

Molon Labe
01-11-2013, 01:59 PM
In a couple of months from now, I would have much rather be debating the economy's performance (or lack there of) under Romney than the economic destruction of Obama. If a few people would have put their personal bias aside and made getting rid of Obama the main task at hand then things might be different today. You basically put your interests head of the country's. Would Romney done a better job? Don't know. Would Obama wise up, that was a certaintly not going to happen and you knew that on election day.

Approx. 100 million eligible voters did not vote this year for whatever reason. Voting in the POTUS election was down by about 5 million

Romney lost by over 5 million votes because he said "no thank you" and "get lost" to the Tea party and libertarian wings of the GOP.

So if I voted then Romney is now roughly 4,999,900 votes closer.

It's time to hold the PARTY accountable and stop holding everyone else. I wish people were equally upset with Party bosses who put THEIR personal interests and power ahead of the country as some of you are with one voter.



http://i686.photobucket.com/albums/vv230/upyourstruly/nP34pDPa1e-16.png

Rock...love ya man...but your argument here consists of

1. Meme pics
2. Nuh Uh.



Yawn


This is about getting our guys in gear to repeal this crap in Congress the way it rightfully should be.

What are YOU doing to make that happen?

FlaGator
01-11-2013, 02:12 PM
Approx. 100 million eligible voters did not vote this year for whatever reason. Voting in the POTUS election was down by about 5 million

Romney lost by over 5 million votes because he said "no thank you" and "get lost" to the Tea party and libertarian wings of the GOP.

So if I voted then Romney is now roughly 4,999,900 votes closer.

It's time to hold the PARTY accountable and stop holding everyone else. I wish people were equally upset with Party bosses who put THEIR personal interests and power ahead of the country as some of you are with one voter.




Rock...love ya man...but your argument here consists of

1. Meme pics
2. Nuh Uh.



Yawn


This is about getting our guys in gear to repeal this crap in Congress the way it rightfully should be.

What are YOU doing to make that happen?

I do hold my party accountable and I am upset that every non liberal didn't have as his or her main objective to remove Obama from office. To those people I have only one thing to say. Obama is yours so

http://i16.photobucket.com/albums/b26/flagator/Own_it_zps959e0e18.png

Rockntractor
01-11-2013, 02:20 PM
1. Meme pics
2. Nuh Uh.





You don't understand words, the pictures are over your head, maybe if we tapped it into your forehead using Morse code and a croquet mallet?http://www.smiley-lol.com/smiley/expressifs/pensif/thinking.gif

Zeus
01-11-2013, 07:34 PM
The payroll Tax Holiday should never have happened, All it accomplished was hurting workers in the long run. Now that it has expired it will hurt the worker in the short haul. unemployment bennies should't have been extended again & again because all it accomplished was making lazy folk even lazier. Also ran up insurance costs for employers furthering unemployment .

JB
01-11-2013, 08:01 PM
I no more did than the foolish ones who nominated someone who could not beat him and betrayed Conservativism.Aye Carumba.


:deadhorse:

Retread
01-11-2013, 09:29 PM
.......


This is about getting our guys in gear to repeal this crap in Congress the way it rightfully should be.

What are YOU doing to make that happen?

Ain't gonna happen, Not after the wannabes became the ustabes. At the end of the second term of the little o the continued rise of the takers over the workers will have grown beyond the point of no return.

No matter how bad it gets there will never be a return to what the country was when it was formed or even what is was when I was much younger. The stayathomers have tilted the downhill slide to the point that it will never be leveled, much less reversed.

I pity my grandson and the life he will be forced to live because some felt the need to place themselves and their feel-goods above their country.