PeakTrader.com

[administrator]

PeakTrader:

“…the imposition of too-early and unwise fiscal contraction (think sequester, cutting off extended unemployment, failure to extend SNAP, and failure to undertake additional infrastructure investments).”

Also, when taxes were raised in 2013, U.S. real GDP growth slowed to 1.9% for 2013, and contracted 2.9% in Q1 2014.

• The expiration of the so-called “Bush tax cuts” enacted in 2001 and 2003 and extended to December 31, 2012 will draw $165 billion out of the economy.

• The renewal of the regular payroll tax, back to 6.2% from the temporary 4.2% extended to December, will draw another $125 billion out of the economy.

• The expiration of the Alternative Minimum Tax (AMT) “patch” designed to protect middle-class taxpayers from this “wealthy-only” tax will now apply to them as well and will extract another $119 billion.

• The expiration of numerous other tax cuts, tax cut extenders, the reimposition of the “death tax” and the elimination of 100% “expensing” for business investment will withdraw an additional $51 billion, and

• The imposition of five of the thirteen new taxes imposed by Obamacare effective January 1, 2013 will be responsible for the balance.

Grand total: $494 billion, or almost four percent of the country’s gross domestic product to be extracted and transferred to the federal government.

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Fiscal Year:

2014: $492 billion (CBO April forecast)
2013: $680 billion
2012: $1.089 trillion

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