This article by Reuters is an example of liberal media bias designed to blame something else instead of Obama. Austerity didn’t cause taxes to go up for most Americans. The Democrats and Obama caused this. Austerity hasn’t hit and probably won’t as long as Obama is president. Had to have austerity when there are no budgets…thank you Democrats.
WASHINGTON (Reuters) – Americans are beginning to feel the pinch from Washington’s decision to embrace austerity measures aimed at bringing down the nation’s budget deficit.
Austerity is where spending cuts are made to lower the deficit. Tax hikes are not austerity since the more money this particular administration brings in, the more it will spend (what Obama calls “investments”). No austerity cuts have been made. See the $1 trillion dollar Obama deficits for proof.
Paychecks across the country have shrunk over the last week due to higher federal tax rates, and workers are already cutting back on spending, which will drag on the economy this year.
The economy has been “dragging” for 5 years under Obamanomics.
In Warren, Rhode Island, Ben DeCastro got his first paycheck on Friday in which taxes on his wages rose by 2 percentage points. That works out to about $30 a week.
“You sit back and do the calculation, and that’s $30 I’m not going to spend at a restaurant,” said DeCastro.
He said he worries that people hit by higher taxes will spend less at the chain of furniture stores where he works as a marketing manager.
Politicians in Washington made much hubbub last week about a bipartisan deal to soften or postpone some $600 billion in scheduled tax hikes and government spending cuts. President Barack Obama said the deal would shield 98 percent of Americans from a middle-class tax hike.
He fucking lied and only the weak-minded, low-information Obama supporters fell for it.
Nevertheless, for most workers, rich and poor alike, taxes went up on December 31 as a temporary payroll tax cut expired. That cut – a 2 percentage point reduction in a levy that funds Social Security – was put in place two years ago to help the economy, which was still smarting from the 2007-09 recession.
About 160 million workers pay this tax, and the increase will cost the average worker about $700 a year, according to the Tax Policy Center, a Washington think tank.
That’s close to the number of Americans actually working out of the 303 million in the US.