0.1% Shrinking US Economy in Fourth Quarter: Will Cutting Taxes Help Recovery?
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2013/01/30 18:29:32
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Tax increases scheduled to go into effect in 2013 may have caused the economy to shrink during October - December 2012. Taxes went up for most Americans despite pledges from President Obama to only raise taxes on the wealthy. Social Security taxes went up about 2%, meaning a family earning $50,000 will have to pay $1,000 more in taxes in 2013.
The Associated Press reported that the shrinking economy may signal bigger problems. The reasons for the shrinking economy may get worse as taxes continue to increase under President Obama and the Democratic agenda. Twice in the article the AP, refers to higher taxes as a threat to economic recovery.
Don't expect a recovery anytime soon, the article says because taxes will affect our spending: "The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay." and the article concludes with, "The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts."
The AP, regarded as a mainstream media source, said that the lower growth may give incentive to the Federal Reserve to add more stimulus spending, which means redistributing taxpayer money.
In August 2009, President Obama clearly stated his position that we shouldn't raise taxes in a recession. Watch the video to see Obama's agreement that tax increases would hurt the economy.
CNBC.COM reports:
The Associated Press reported that the shrinking economy may signal bigger problems. The reasons for the shrinking economy may get worse as taxes continue to increase under President Obama and the Democratic agenda. Twice in the article the AP, refers to higher taxes as a threat to economic recovery.
Don't expect a recovery anytime soon, the article says because taxes will affect our spending: "The economy may stay weak at the start of the year because Americans are coming to grips with an increase in Social Security taxes that has left them with less take-home pay." and the article concludes with, "The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts."
The AP, regarded as a mainstream media source, said that the lower growth may give incentive to the Federal Reserve to add more stimulus spending, which means redistributing taxpayer money.
In August 2009, President Obama clearly stated his position that we shouldn't raise taxes in a recession. Watch the video to see Obama's agreement that tax increases would hurt the economy.
CNBC.COM reports:
The US economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Fed stimulus.
Read More: http://www.cnbc.com/id/100419252
Top Opinion
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Michael 2013/01/30 18:39:02Cutting Taxes Helps the Economy
+5Stimulus is not the answer either, that means more taxes down the road. People must "trust" the government policy and know what to expect in the long run. Health Insurance, Obama Care, has also caused a damper...businesses don't know what to expect. Now, with the amnesty for illegal aliens on the table, another damper to the labor market and benefits sector...The Democrats want it because it means, ultimately, more votes, but it means more and higher taxes, with the accompanying loss of jobs and unions trying to have them join to raise dues, more votes and and and...
A flatter, fairer tax system and massive deregulation are what we really need to get the economy turned around. But our current leadership isn't smart enough to accept that... Obama and his cadre believe all good comes from the Imperial City of Washington.
Let's try printing more money and spending it....again..should work this time, right? No worries, we'll just blame Fox news if it doesn't....LOL..morons.
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
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well P...
&
Let's try printing more money and spending it....again..should work this time, right? No worries, we'll just blame Fox news if it doesn't....LOL..morons.
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
Road Usage Tax
Recreational Vehicle Tax
Sales Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Nonrecurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Not one of these taxes existed 100 years ago, & our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the kids.
When are we going to get FED up?
TEA anyone???????
THE ECONOMY CONTINUES TO CONTRACT...APPLAUSE TO THE OBAMA VOTERS FOR DOING IT AGAIN....AND YOU !*#*! STILL CONTINUE TO SPEW THE BS!!!
"People like you fail to understand that there is the SAME amound of money in the economy" .... Bwahahaha ....
GDP, employment had everything to do with an artificial economy under GWB. Which is exactly why it all failed. What people like YOU dont understand is simple economics.
Greenspan stayed out? LOL ... every crises Greeny met he lowered interest rates ... he was a serial rate cutter
Foreigners continue to buy Treasuries in record amounts by simple notice that interest rates on long term treasuries are at historic lows.
Bonds are issued by the USGovt at a rate the market will accept. No demand drives yields up and bond prices down. That is simply not happening.
Remember MBS are nothing more than a derivative, and these "derivatives" are nothing more than toxic waste. They are ABS, CDO, CDO2, etc. THEY HAD NO MARKET!
FASB, at the beginning of the crises in April 2009 (or May, cant remember) changed the accounting rules for the banks BECAUSE of these toxic assets. They are worthless and now the FED is taking them off the insolvent banks books and counting them as reserves.
F'n amazing!