Seeking Alpha

The payroll tax holiday will not be extended, according to JPMorgan, reducing U.S. disposable...

The payroll tax holiday will not be extended, according to JPMorgan, reducing U.S. disposable income next year by $125B and causing a significant contraction in the economy. So there's 0.6% knocked off next year's GDP growth, and we haven't got to the Bush tax cuts. (h/t David Schawel)
Comments (4)
  • Terry330
    , contributor
    Comments (866) | Send Message
     
    The Bush tax cuts for wealthy placed US in trillions of dollars of debt, and-and another few trillion in war spending debt.
    8 Nov 2012, 05:18 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2178) | Send Message
     
    No it didn't. What happened was the government spent beyond it's means...and has continued to accelerate that.
    Bush tax cuts for the wealthy equated to $40 Billion decrease per year in revenue. The tax cuts for everyone equated to ~$360 Billion decrease per year. Notice deficit spending is in excess of $1 Trillion. Thus if the tax cuts for everyone expired we would still be in deficit/debt.

     

    Just wait and see what happens when 2013 rolls around and payroll taxes kick in, tax cuts expire (for anyone) and the HC tax hits individuals and businesses. Q1 2013 is going to be brutal.
    8 Nov 2012, 05:27 PM Reply Like
  • Terry330
    , contributor
    Comments (866) | Send Message
     
    If the people who supported Bush and his wars would man-up and pay for them,.... I'm dreaming Conservatives have stated for years they will not pay one dollar toward the war debts or 70+ years disability pay for military veterans.
    8 Nov 2012, 05:40 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2178) | Send Message
     
    I believe we are STILL involved in those conflicts, plus got involved in Libya, Yemen, Pakistan... Its been 4 yrs and here we still are. It's Bush's fault doesn't work. In 8 yrs of Bush the debt increased by ~4.3 Trillion... In 4 yrs of Obama it has increased $3.9 Trillion (then Sen Obama voted for the bailouts so he gets that one too).
    You can point fingers all you want, but the spending regime, along with extending the tax cuts every year during his 4 yrs falls to Obama. He has continued or accelerated most of the previous administrations policies.
    Bush was a lousy president, but I sure don't see any improvement in the present one.
    8 Nov 2012, 05:55 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|