US Household Income Drops Most in 20 Years, And It Had Nothing to do With the Sequester

PJ Tatler ^ | March 1, 2013 | Bryan Preston

[lbryce]

On January 1 your payroll taxes went up a couple of percentage points. That caused household income to drop like a stone, the sharpest drop in 20 years. Income dropped 3.6 percent, hitting its lowest level in more than five years.

By the way, gas prices are inching back up too.

The average American family’s income is going backwards, while the federal government continues to grow and grow and grow.

Yet, as congressional leaders and the president meet at the White House today, President Obama will badger Republicans for even more tax increases as part of a deal to avoid the sequestration cuts in the rate of the growth of government spending. Tax hikes were not part of the original sequestration deal — that’s the “moving the goal posts” that Obama aide Gene Sperling warned Bob Woodward he would regret reporting. Obama will fight for every penny of federal spending, casting any cut as draconian and extreme. And members of the media will do their best to provide cover for Obama, agreeing with him that any cuts in the rate of growth of spending are “extreme” and the Republicans are being unreasonable.

The bottom line today is that your income probably went down. Why shouldn’t federal government bureaucrats feel the same pinch the rest of us are feeling? Happy Sequester Day!

[lbryce]

Obama's plan for America is taking hold, on schedule, worse, much worse is yet to come if Obama has anything to do about it. This is merely the initial effect of the tax increases. The full brunt of the increases has yet to ripple though the economy, rear its ugly head in a bad way.

[Jack Hammer]

“...income is going backwards, while the federal government continues to grow and grow and grow.”

This is somewhat more technically known as socialism or Marxism, and is, of course, a direct result of White House planning.

Now aren’t you glad you voted for Obama, America?

[ridesthemiles]

I have prepared payrolls for a long number of years.

I cannot remember when the rate of 6.2% was intalled for each side of the employer/employee sandwich. It was a long time ago.

Obama ARTIFICIALLY lowered that rate for the EMPLOYEE ONLY by 2%, which meant that billions of dollars of Soc Sec taxes were NOT going to the the government.

Meanwhile. people on long term UNEMPLOYMENT were being quickly switched by the feds to Social Security DISABILITY.

The fund is in danger of being totally broke before 2016 is over.

That artificial 2% “payday’ bump for employees was a travesty, IMO.

[Intolerant in NJ]

. Income dropped 3.6 percent, hitting its lowest level in more than five years...and yet where were Obama and the 'rats bemoaning this loss and how badly it hurt everyone, including the middle class? - wailing because families could no longer eat out as they would like, go on vacation, buy books for their kids, and on and on - the way they're catastrophizing about the sequester cuts that will hurt government - the message is clear: for 'rats, government is important, people aren't....

[tiki]

I thought the same thing when it was implemented and still agree but when you’re living on the edge and many are, that 20 bucks came in handy.

[KarlInOhio]

I cannot remember when the rate of 6.2% was intalled for each side of the employer/employee sandwich. It was a long time ago.

1990.

http://www.ssa.gov/oact/progdata/taxRates.html