Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Actually, someone making $300.00/week isn't subject to this. It's $1600/year for the average middle class family. I hope it's not enough to make a difference. I'm just not sure it's not enough to make a difference because it's hard to tell how solid the economy is. How much impact will taking $1600/middle class family out of the economy have? In a good economy the answer would be none. Are we in a good economy?
If it were $6/household, I wouldn't be concerned at all.
Everyone is subject to FICA. It's 2% of your weekly salary.
You do the math. It's not as catastrophic as you seem to think.
Heaven forbid that working people should actually have a few 100 more $ to do with as they wish. Even if they don't use it for rent, food, winter clothes, medicine, a child's education, crazy stuff like that, it would be selfish and downright Un-American to allow us to spend money on frills like [gulp !] a vacation, home renovations, a new computer, or other unnecessary crud.
The problem is they were only given that money temporarily. It would be like our boss giving you a temporary raise. Even if the raise wasn't much, you get used to having it and you notice when it's gone whereas you would never have missed it if you never had it. It makes about as much sense as the stimulus checks that were mailed out a few years back. If you're going to do something to kick start the economy, make it significant and if you intend on taking it back, wait until wages have started to rise so that the economy doesn't feel the pinch.
I would rather they'd never done this than to do it and take it back while the economy is still shaky.
I'm pretty sure I never commented on it since I've been retired since 2007. If I did, please show me. I did a search on "payroll tax" with LauraC and came up with nothing.
Well... considering that one of your "contributions" on the subject is this...
Quote:
Originally Posted by LauraC
"House Republicans have no plans to extend a payroll tax holiday scheduled to expire in 2012, according to several leading GOP members. House liberals have warned that conservatives next year might push to extend the one-year payroll tax cut that was included in the White House-GOP tax package, leaving Social Security to compete with other programs for funding — and threatening seniors' benefits over time. Rep. Jeb Hensarling (R-Texas), who will head the House Republican Conference in the next Congress, said he didn't support the payroll tax holiday to begin with and won't support an extension."
Everyone is subject to FICA. It's 2% of your weekly salary.
You do the math. It's not as catastrophic as you seem to think.
So what impact do you think taking $1600/year from the average middle class family will have on the economy? When I do the math, I think that number is high enough that it may have a negative impact.
While I agree with ending the cut, I think it should have waited until wages started to come up or never been done in the first place (which would have been preferred). I think they counted on wages rising by now but they're stagnant.
An average of $1600/household in a city with 25K middle class households works out to be 40 million out of the local economy. Is that enough to make a difference? I hope not but I'm fearful it is. I guess the question is if spending drops 2%, will that impact the recovery?
Goodness I can't WAIT to make $50,000!! Right now I'm working with $19,000 a year and that's BEFORE taxes come in and eat it up. But I'm doing alright, working for chump change is showing me how to live with what I need and to budget accordingly. And before everyone tries to say how lazy, or it's my fault and blah blah blah, because I know all of you angels are millionaires and bums such as I are messing up your precious economy; I do have a bachelors, and right now every company I attempt to go to they want at least 5 or more years of working experience in the field that I have my degree in so at the moment, I am gaining experience, volunteering, attending a few training sessions, will be networking this year, going to seminars (which are NOT cheap), in order to get to where I want to go. Not to mention I have a kid of my own. I feel for yall, but goodness, can we trade places for a sec? I know if I'm able to lead a some-what normal life with what I'm making annually, I can REALLY do something with what yall are making.
So what impact do you think taking $1600/year from the average middle class family will have on the economy? When I do the math, I think that number is high enough that it may have a negative impact.
While I agree with ending the cut, I think it should have waited until wages started to come up or never been done in the first place (which would have been preferred). I think they counted on wages rising by now but they're stagnant.
An average of $1600/household in a city with 25K middle class households works out to be 40 million out of the local economy. Is that enough to make a difference? I hope not but I'm fearful it is. I guess the question is if spending drops 2%, will that impact the recovery?
$1600 a year comes out to $30/paycheck.
At that salary $30 is pennies and easily recouped by not going off to Starbucks as much.
Your healthcare probably went up more than that.
$1600 equates to $80K annual salary.
I'm sure they can absorb $30 less per week. If they can't on $80K a year then they have bigger problems than this FICA tax reinstatement.
$1600 a year comes out to $30/paycheck.
Your healthcare probably went up more than that.
$1600 equates to $80K annual salary.
I'm sure they can absorb $30 less per week. If they can't on $80K a year then they have bigger problems than this FICA tax reinstatement.
Yes I'm aware that's an $80K salary. Pretty typical for middle class.
Wrong argument. I'm not arguing that the average family can't absorb it. I'm questioning what the impact of taking that money out of the economy will be. As I said, if a city has 25K middle income families all losing an average of $1600 per year to spend, that works out to 40 million in lost revenues. The question is what impact will that have on the economy not what impact that will have on me.
I'm fine. I'll just stop buying supplies for my classroom and that takes care of about 1/3 of my loss. The other 2/3 is easily made up by stopping wasteful practices like going out to dinner once a month and keeping clothes a little longer. The question is what is the cumulative effect of thousands of families doing the same on the economy? From where I sit,the economy is limping as it is. I hope it's strong enough to absorb this but I'm afraid it may not be.
I'm not arguing about what was done, just the timing. I think it could have waited until the economy was a little stronger.
Yes I'm aware that's an $80K salary. Pretty typical for middle class.
Wrong argument. I'm not arguing that the average family can't absorb it. I'm questioning what the impact of taking that money out of the economy will be. As I said, if a city has 25K middle income families all losing an average of $1600 per year to spend, that works out to 40 million in lost revenues. The question is what impact will that have on the economy not what impact that will have on me.
I'm fine. I'll just stop buying supplies for my classroom and that takes care of about 1/3 of my loss. The other 2/3 is easily made up by stopping wasteful practices like going out to dinner once a month and keeping clothes a little longer. The question is what is the cumulative effect of thousands of families doing the same on the economy? From where I sit,the economy is limping as it is. I hope it's strong enough to absorb this but I'm afraid it may not be.
I'm not arguing about what was done, just the timing. I think it could have waited until the economy was a little stronger.
That money had little to no impact on the economy when it was given to them despite all the MSM hooting and hollering over it. Why would you think that taking it back would be catastrophic ?
You are going to have more taken out of your paycheck in healthcare than this 2%.
You're of the opinion we'll go back to what we used to have. I'm of the opinion that this is the new America and we better get used to it and adjust our thinking and spending.
No one forced you to use your own money for classroom supplies (although I totally understand where you're coming from since I'm in the classroom as well). Stop the supplies then. You have to take care of yourself first. School budgets should take care of your supplies and you are not doing your fellow teachers any good by sucking it up and paying for it out of your own pocket. You think your school administrators don't know that ?
I charge $.10 per pencil now. Kids didn't borrow them, they took them and never returned them so now I charge.
A lot more kids showing up with their own pencils these days and if they have no money they get no pencil.
You're of the opinion that the economy will get better.
I'm of the opinion that this IS the economy and we better get used to it and adjust our thinking and way of spending.
I'll just stop buying supplies for my classroom and that takes care of about 1/3 of my loss.
You might want to consult with your tax adviser about this first. The fiscal cliff bill contained an extension of the deduction for classroom expenses of elementary and secondary school teachers.
Sec. 201
Maybe pick something to cut that you don't get a tax benefit from.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
50 k/yr rich?
