So overall I agree with your point, but the "increase" in the payroll tax isn't really an increase. We got a temporary break from it two years ago. It wasn't meant to be permanent.
This. The reduction in the payroll tax was, as I recall, intended to be an economic stimulus measure.
I learned awhile back that there's always more to the story, and Congress generally will screw me and most people over no matter what. Both parties do it. You can probably fit the responsible adult members of Congress in a Chevy Cobalt.
So no, it's not okay, but any other realistically possible outcome is as bad. Raising taxes on the rich would be nothing more than a symbolic fuck-you to the successful; it won't have a significant impact on the debt or deficit and will make investors and business owners skittish.
Until they start spending a lot less, nothing is going to get better. And since they're spending other people's money this is probably not going to happen until the economic system collapses to the point of forcing an overhaul.
Seen on Despair.com:
Congress - If you think the problems we create are bad, just wait until you see our solutions!
2013-01-04 12:26 am (UTC)
laughing my faceless face off
Nothing the US does really seems okay.
There's nothing okay about that.
There's not a good solution. We spend more than we bring in. Period. So either cutting spending or taxing more is going to screw a lot of people. There's no way around it.
The fact that they have to cut all "entitlement" spending before they cut military spending is pretty fucked up as well, but no one in the media even touches that issue.
It's a fiscal ripple compared to the real cliff looming ahead, when a tsunami of federal workers retire. The federal government has promised trillions of dollars to millions of people, with no possible means of making good on that debt. Even if taxes doubled several times over, or reached 100% of income, the revenue would not make a dent in paying what's owed.
There is no good solution. Raise taxes? The voters won't stand for it. Anyone suggesting this will get voted out of office. Cut spending? Those dependent on the spending will raise such a fuss that this won't happen, either. The only partial option left is to create more money, which means massive inflation.
Both parties see the present situation as the perfect time to let taxes go up. By doing nothing, the government gets higher taxes, and each side can then blame the other. "We didn't raise your taxes. It's those other guys who did the dirty deed."
economics really makes me frightened.
agreed. I feel pretty uneducated about economics and all that sort of thing, and everything I learn makes me want to keep it that way because I get too anxious when I think about it.
Well, it is the expiration of a tax holiday. Not so much the raising of taxes as the non-extension of what was supposed to be a special break. At no point was I relying or expecting it to be extended even more, and wishing it was would be hypocritical of me.
That said, I get your general point. They seem to be taking pandering and misdirected baby steps that may or may not lead anywhere, and they need to get going.
Here's the thing - we should have gone over the cliff.
The tax cuts were designed to be temporary. The SS tax cut was a 'holiday'. And yes, both these things ending would have very much adversely affected my family's income. However, the US simply cannot sustain its current level of spending and that at the end of the day if you want programs the money has to come from somewhere. Don't bitch about unemployment unless you're willing to pay more $$ when you finally get a job (me, I'd rather have less programs and pay less money, but that's at least consistent). In case you haven't picked up on it, I'm very fiscally conservative.
Frankly the only people I respect at this point are the Senators and Representatives that voted against the measure.
I saw a bumper sticker that sums up how I feel about our current political climate: Too poor to be a Republican, too smart to be a Democrat.
I'm pretty sure "rich people" are now going to be paying a higher marginal tax, while everyone else's marginal tax rates are staying the same. And the 2% increase of social security tax is really just an expiration of a temporary decrease, which other commenters have mentioned.
No, not really. All this shows is that neither party in Congress is actually interested in doing something about the federal deficit.