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When they opened up their first paycheck this year, most workers found—or will find—that it contains less money.
That’s because the New Year’s Day tax passage did not prevent the temporary reduction in the Social Security payroll tax from expiring. For the worker making $50,000, that means they’ll be making about $1,000 less this year. About 77 percent of American workers are affected.
To be honest, this was a needed step. Reducing the funding of Social Security, while it meant more money in workers’ pockets at the time, only made paying for that benefit worse.
But that’s about all Congress and the President got right with the latest “fiscal cliff” fiasco. The fact is, the cliff just keeps getting closer.
And the solution has nothing to do with raising taxes.
The real problem is spending. Until the federal government decides to stop living above its means, this mess will only get worse. Trying to fund its drunken spending spree on the backs of good working Americans will ultimately backfire on Congress and the President, as well. One can only assume all the King’s men hope this comes after they are long gone.
Raising federal income taxes isn’t the answer; cutting the federal government’s insane spending habits is. The question is, will this country’s leaders ever take action? If they don’t the cliff will prove to be real and the fall will be long.
And, hitting rock bottom will hurt.