Americans feel austerity’s bite as payroll taxes rise

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.

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… 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.

Yeah, raising taxes is great for the struggling US economy (where’s that roll-eyes emoticon?)

Americans feel austerity’s bite as payroll taxes rise

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

10 Comments

  1. You must be joking using the word “Austerity”. The 2% SS cut was a gift, a freebie for workers and a giant sucking sound for the SS trust fund. Austerity is when one spends less than one earns to pay off the debt. we are still spending much more than we earn, and Congress recklessly spends even more.

  2. Thanks for all the good information you have put out today Eamonn.

  3. Hi Eamonn, I have developed a unique math based method of pointing out resistances and supports., Is there any institution that accepts such ideas? as in other than trading whats the best way of maximising on it?

  4. Well said zeke. The sooner we get back to Regan era taxes and Kenedy era regulation the sooner we can start to call America great again.

  5. Hi majimaji – the easiest way is to trade the idea, soon enough you’ll have a track record that will speak for itself. Don’t be afraid to knock on doors of hedge funds, prop shops, banks etc.

  6. @majimaji: Hey why don’t you share it with us all… here? so it can be Validated

  7. @majimaji: how does the Sharpe look on it? Did you do backtesting?

  8. Thanks for the kind words Manderley3

  9. Thanks, Back tested it, is awesome on gold. I will approach a bank. thanks a lot for the advice

  10. been using it for the last 3weeks

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