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What Does $40,000 Mean to You?

Obama's pathetic $40 Social security tax cut is nothing compared to his $40,000 debt increase

By: Daniel Horowitz (Diary)  |  December 22nd, 2011 at 03:55 PM  | 

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Obama has been running around all day making a fool of himself as he promotes his $40 Social Security tax cut.  Yes, the tax plan that will create a new class warfare Social Security Taxable Wage limit in order to accommodate his totally unworkable two-month extension.  Obama has even set up a new web page asking people “what $40 per paycheck would mean to you.”

Republicans should respond by setting up a web page asking every taxpayer to explain how a $40,000 increase in their share of debt will affect their finances and those of their grandchildren.

You see, while the media has been focusing on Obama’s two-month Social Security tax cut, they have ignored another big story.  Our national debt has surpassed 100% of GDP.  With Q3 GDP revised downward, our economy now stands at $15.081 trillion.  Our total federal debt is over $15.14 trillion.

How much of that debt is Obama responsible for?

When Obama took office, the total federal debt stood at $10.6 trillion.  Obama’s share of the debt increase is roughly $4.5 trillion.  There are approximately $112.7 million taxpayers.  That means that the individual share of the Obama debt is about $40,000.

So while Obama is bragging about his $40 tax cut, he is obfuscating the fact that he is increasing more entitlement spending along with the package.  This will only increase the $40,000 share of debt for every taxpayer.

We know that $40,000 is not much for the commander-in-chief of all class warfare, but what does it mean for you?

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COMMENTS

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  • earlgrey

    of the American people and that is what we need to have happen in order to save what is left of this country.

    • theericker

      He has got to go….no strategy or intelligence whatsoever. If everyone knows he’ll fold at the end of the day and he always does, why take the arrows when you stand no chance in hell in getting anything for it? I am all for a principled stance, but dammit, follow through on your threats.

      It’s time to primary challenge the top republicans regardless who runs against them. If that fails, support the democrat….in the scheme of things 5 or 6 seats isn’t going to change the balance of power, but would be worth it to get new (hopefully better) leadership. I am sick and tired of our idiot leaders getting their asses handed to them time and again….you’d think it would make them mad too and figure out a way to beat the commie jerks on the other side of the aisle.

      • kowalski

        It wasn’t so bad! Everyone in the Republican caucus feels like they just got dragged through a pile of broken glass, naked, for nothing, We let Obama claim cutting taxes just before Christmas, and the big story is all going to be about how Republicans looked into Obama’s eyes and blinked.

        One thing Republicans should do tonight, and tomorrow night, and all throughout the holidays – is completely abstain from alcohol. Don’t drink a drop of the stuff. Get the heck out of DC, lock the liquor cabinet, and go to an AA meeting. But don’t drink. It’s just going to make things worse.

        • jazzycmk

          He cut the Republican losses on this story.

          Frankly, WSJ had it right in their recent editorial. The GOP year long extension wasn’t really any better. Their argument was that no employer was going to hire based on the promise of a two-month tax holiday (not a cut). Well, they aren’t going to hire based on the promise of a year either.

          So if you know you’re going to end up passing something, but you’re losing the PR battle, you might as well pass the two-month extension and get it over with. They should have done it earlier so that it didn’t mushroom into such a story.

          As it is, I think damage is minimal. Press will cover if favorably for Obama as it always does, but the masses are not paying that much attention just before Christmas.

          • heraklios

            The GOP had an opportunity to use the payroll tax holiday debate to lay out a compelling alternative vision for America to counter the borrow and spend agenda of Obama and the D.C. Republicans. Yet, as usual, our leaders lack the courage and principles to do the right thing.

            A lot of Americans understand that borrowing more money for a temporary tax gimmick (that undermines the solvency of social security) and to continue to pay people not to work, is wrong for America. The House Republicans could have framed 2012 as fiscal sanity versus profligate borrowing and spending leading our country to ruin. This debate presented the best opportunity for a clear contrast between limited government and BIG government that we have seen in a long time. Yet, once again, our leaders couldn’t seize the opportunity and proved themselves not up tot he challenge.

          • jazzycmk

            I agree with everything you’re saying in principle.

            But I’m not sure how clear a contrast the GOP was going to strike. Obama and MSM made it all about the middle class being denied a tax cut while GOP wanted to protect the rich. GOP could fight the good fight about spending, but it’s no slam dunk that they win that argument in court of public opinion.

            I’m just depressed that in two months we’re going to be here again. Can kicked down the road yet again.

            GOP needs to establish its frontrunner soon so that the party can sharpen its attacks on Obama. I’m not a believer that a long, drawn out primary battle will help the eventual candidate in the long run. All it will do is make him / her use up funds fighting other Republicans while allowing Obama’s team sits on its warchest and makes commercials featuring the rest of the Republican field taking shots at the eventual candidate.

          • heraklios

            Given the amount of debt incurred by our govenrment over the past 10 years, I think most Americans recognize the need to get our fiscal house in order. Most people view politicians advocating tax cuts in the present environment as suspect given to size and scope of our debt problem. Most Americans, frankly, view proposed tax cuts, from either party, as a destructive gimmick. If the GOP would focus like a laser on cutting spending, reducing regulations, reducing government involvement in the economy (ie Obamacare), and restoring our nation’s finances, then we would see a steady rise in the polls. People recognize that cutting revenues really isn’t preactical now until we restore jobs and growth. Our mantra for 2012 should be repeated every day:

            1) Government isn’t the solution but the problem
            2) We can’t borrow our way to prosperity
            3) Restoring fiscal sanity and cutting government spending will lead to JOBS

            If every Republican would preach the above, every day, we would win 2012 in a landslide.

          • jazzycmk

            Here’s hoping they take your advice. Happy New Year.

          • APA Guy

            …over on another thread telling me the dangers of privatization as though the government wasteland that is Social Security isn’t wasting my money each and every day? How can you repeat #1 of your list above – then tell me that the private sector is not the alternative to investing my own retirement money?

            I’m really not trying to be snotty…just trying to reconcile your positions here.

          • heraklios

            Moreover, millions of elderly Americans rely on social security as their only source of income, and millions more will depend on SS in the future due to the collapse of our economy. Many of these Americans would lose their money through bad investments if called upon to make investment choices with their SS account. For this reason, a minimal monthly benefit for retirees must stay (although certainly the program can be tweaked, i.e. retirement age, COLA, etc) I think that even hard-core conservatives can agree that some minimal sustenance should be available for the elderly. That is part of living in a civilized society.

            Trust be told, social security isn’t causing our debt problem right now. It runs a surplus and will for several more years, assuming we don’t continue policies like the payroll tax holiday. The federal govenrment is raiding the social security program to fund other programs. The spending on these other programs needs to be our focus.

            Moreover, I don’t need to tell you that any attempt to modify SS that could potentially put future benefits at risk will cause the proponent of that propsoal to be hammered politically. Even if private accounts for all was good policy (which I don’t think it is), it is political suicide.

          • http://impudent.edublogs.org/ kyle8

            In the first place I have never seen any plan that REQUIRES people to invest, they all offer it as an option.

            Furthermore, if a person just invested in a mix of bonds and market funds that followed the Dow, you would have done better than social security over the decades even when you include all of the market downturns.

            APA guy is correct, there is no real conservative justification for continuing this broke Ponzi scheme which transfers money from the young working poor to the wealthy old.

          • APA Guy

            Social Security taxes are not advertised, sold, or explained via the mailings I receive from the federal government as a payment source for current recipients…nor does the federal government disclose that it take interest earned from my payroll taxes and finances its freakin debt. It is sold as a public retirement fund. By definition, the moment ANYTHING earned from the public investment of my money went to pay anything but interest into my own retirement fund, that program became a PONZI SCHEME…i.e. an investment that promises one type of return and outwardly delivers another.

            As a 20-year taxpayer, I would like the option to invest my own money into the retirement portfolio of my choice. If the federal government has not invested the retirement contributions senior citizens have made for 3-6 decades, it can find the difference in fundselsewhere instead of compromising my ability to invest in a more profitable future.

            Why an alleged conservative would argue that it is my responsibility to fund the excesses and irresponsibility of the federal government in lieu of providing my family with a more secure future is anyone’s guess. I guess socialism is more important than liberty in 2011.

          • theericker

            I see what you’re saying Jazzycmk, but my point is, why even go there in the first place. They raise the issue (1 year vs. 2 months), which I agree is of little consequence in the first place, talk a big game about holding firm, develop zero strategy in making their case (easily communicated and understood talking points, etc.), do even less to promote their case, and then fold at the end of the day like everyone knew they would from the beginning. Why get the black eye over this if you are going to do the predicted outcome anyway. Instead of just caving, they caved and got bad publicity. Not only that, he further cemented as reputation as a caver causing the demoncrats to more of this BS going forward. He did this on every issue, including the larger ones, so why would the dems treat him any different on this relatively minor battle. The republican leadership has been absolutely worthless this whole year and squandered a golden opportunity because they are afraid to confront the media and presidents.

            Look at Trump, he took the birther issue from a marginalized kook to mainstream issue, compelling Maobama to show his certificate, in about a month. Boehner could even make his justifiable case of cutting $100 billion from a $3400 billion budget Obama increased by $800 billion in a zero inflation budget. Again no messaging, no strategy, and fighting losing battles. If he had a line in the sand he should have prepared to defend it ahead of time instead of buckling under pressure at the 11′th hour.

            We would be better off picking him and the other top 5 GOP off in the primary, general election if needed. In the scheme of things, 5 or 6 house seats temporarily in democrat hands is not a big deal and hopefully getting competent leadership downstream in the rank and file may be worth it. It seems pretty hard to move these guys out of leadership positions once they have them as long as they have office.

          • heraklios

            He has no conservatives in his inner circle and completely lacks an understanding of what motivates conservative voters and activists. We will get nwhere as long as he, Cantor, McCarty, Hensarling and the other leadership guy are in positions of power. I heard Jeff Landry on CNBC this morning and think he would make a great speaker. What say everyone?

          • thirstyboots

            The same folks who hate Boehner would start hating him.

  • earlgrey

    of the American people and that is what we need to have happen in order to save what is left of this country.

  • Common_Cents

    Over half the work force has less than 25k saved for retirement. Obama’s extra 40,000 debt alone wipes everyone out.

    Why we don’t hear this message from the GOP? FAIL.

  • adamcarralejo

    I’m pretty sure the overemphasis by republicans on debt, deficit, and spending cuts is exactly why the House GOP is in the situation they’re in.

    Lesson: fix the economy, then fix the deficit. Maybe that way the GOP can avoid becoming the party of high taxes.

    • ohiohistorian

      And the only way to fix the economy is to reverse the path that the Democrats put the country on in 2007; more spending, more welfare, more gimmee stuff, more enterprise-killing regulations. The Republicans have passed 27 bills to try to improve Federal spending and regulations that sit in the restrooms in the Senate for Harry Reid to use as toilet paper. However, Democrats far and wide from the Talking Forehead to Barack Obama think that the way the Democrats have not budgeted, have increased spending by $1 Trillion per year, is just peachy.

      To fix this economy is the responsibility of the VOTERS. They need to vote out the Democrat majority in the Senate, vote out the Democrat leadership in the House, and vote out Barack Obama. However, at this point, what is happening is going to make us look like the United States of Zimbabwe as we continue to try to spend other people’s and nobody’s money.

      The Federal government is what the Republicans can fix. All they can do is try to fix the rest of the country by putting in place policies that favor free enterprise. That is what has been all but killed in the last 4 years.

  • adamcarralejo

    since t-bonds are issued in 30 year terms – that $40,000 should be divided by 30, and again by 12 if you want to compare it to the “$40″ monthly payroll tax number. $111.11 doesn’t sound so hyperbolic, does it?

    • Darin_H

      So your point would be better made if you said $40k/3 years spending = 13,333.33 a year, then by 12 = $1,111.11

      So yeah, a grand a month is a pretty big deal to most people.

    • zooboy

      You conveniently forgot to include the interest payments for 30 years on that $40,000. Those accumulated interest payments alone would dwarf the initial 40K principal amount.

  • writescribe

    an inappropriate question, but what happened to your posting earlier today about McConnell needing to resign? I gave it a cursory reading and made a mental note to re-read in more detail as it seemed like it was a good post, but now it appears to have been removed?

    Again, I hope this question is not impertinent.

  • hobarticus

    The cave is on.

    http://www.politico.com/news/stories/1211/70782.html

    But hey, at least they’re getting off in time for happy hour.

  • DerKrieger

    …and the Democrats that they think $40/paycheck will make a big difference to a large number of Americans? Do they think we all live paycheck to paycheck, struggling to survive and that we’d surely perish if not for our patron saint and savior, Uncle Nanny Samantha?

    Will it matter to some people? Sure.

    Are they likey to be the types to follow the politics of all of this? No.

  • mkozikowski

    But every hour, day, month we don’t pay that $40K back, we owe even more.

    It means my children will be in a boat load of trouble when they get older.

  • hweila

    will mean absolutely nothing to most Americans because they don’t really believe their income (as opposed to that of The Rich) will ever be tapped to pay it back, whereas having an extra $40 each paycheck in their hands will mean something to them.

    Obama has absolutely won on this one. The current state of this country is that the economy is in the toilet and the vast majority of people live paycheck to paycheck. (And if you doubt that even for a second look no further than our dismal and now declining again savings rate.)

    Until you have a large enough class in this country that feels they personally have something to lose by country getting further and further into debt, arguments like this will be completely ineffective.

    • Ausonius

      It is hard to maintain any kind of optimism when the slightest amount of class warfare from MAObama turns our RINO’s into pools of pusillanimity.

      A RINO collapse was completely predictable: when have they ever stood and held the line and explained their position?

      Today’s (Dec. 22, 2011) Wall Street Journal’s lead editorial asks: “How did the GOP manage to lose the tax issue to Obama?” See:

      http://online.wsj.com/article/SB10001424052970204791104577110573867064702.html?mod=WSJ_hp_mostpop_read

      Idiocy and cowardice are my answers! But then as representatives of the electorate, they might just be doing their job!

      So we are forced to ask: how idiotic and cowardly have Americans become?

      Do we need a complete national collapse to show people that the number of duplicate governmental bodies in this country cannot be financed?

      How many E.P.A.’s can we support? My county in Ohio has an E.P.A., and then the state has one, and of course the huge national one! County bureaucrats for education, state and federal bureaucrats for education, and health care, and welfare, etc. etc. etc.

      The Wall Street Journal recently reported on the 30 feet of binders holding Federal regulations ready to throw in you jail for not correctly filling out a form for importing coral. (True story).

      When will the idiots who vote for idiotic and cowardly politicians finally decide that enough is enough?

      • writescribe

        of the freshman Republicans (or any others who were trying to hold out) will prevent the “unanimous consent” from passing. From what I understand, if the unanimous consent does not pass, then it would force a floor vote. Likely, the payroll tax cut would pass anyway, but at least you go down fighting.

        If no one prevents the unanimous consent, does that mean all the Tea Party representatives caved? Curious as to other people’s thoughts…

        • Ausonius

          They were the ones supposedly bringing a spinal transplant to Boehner and company.

          We do not want them to go down fighting: we want them to win!

          Are there not enough of them yet to force the issue?

          I was watching ABC News dancing about Obama’s “triumph” and how the economy will be just fine and employment will be going up now and la de da de da…until at the end they mumbled something about “February.”

          The Orwellian duplicity of the MSM continues unabated: Debt is Prosperity, Tax Increases are Tax Cuts, Rising Unemployment Is 100,000 More Jobs Per Month.

    • tomatin

      But sure Boehner and the GOP leadership should have played this much better.

  • GregInFla

    When Obama argued to stop the Bush tax cuts, he said it was not a tax increase, but rather a return to the normal tax rates. When Obama argued that the FICA tax cut would go away, he said that it would be a tax increase to let it expire. Can anyone note the obvious idiocy here and call him out on it. At this point, I know it will NOT be the GOP leadership.

    • hweila

      Even with the Democrats still in full control of Congress, they ended up renewing the Bush tax cuts and kicking the can further down the road.

      That people won’t accept even the most marginal increase in their taxes is a good thing, not a bad one. The Republicans should have just voted for this and moved onto to arguing for spending reductions. This should’ve never been allowed to become a fight. They should’ve been loud about the cost and that it was something that would have to be paid for with spending cuts in the future, but they should’ve voted for it and moved on.

      • GregInFla

        Asking people who are getting a mortgage to pay extra fees to pay for this FICA break is a joke. They should have cut spending to the NEA or the Dept of Energy instead. Cancelling the 100 watt lightbulb ban would have covered it. But I later heard that was in there as well.

  • persiflage

    our children and grandchildren, and their children into financial slavery to the state. They will live their entire lives as slaves of the state. This is immoral, and they will rightfully curse us for not standing up for them when they were young innocents and had no way to vote (or fight) against this abuse. Their only way to be free men and women again will be to alter or abolish the government that enslaves them, i.e., what we adults should be doing right now to save their future. But we aren’t doing it, because we are immoral slavers. Where is there hope for the future?

    • satchman3

      We are running up a debt that will be paid through higher taxes or inflation by future generations.

      I’m with you persiflage – our inability to reign in the deficit speaks poorly for our collective character.

  • lastgopinillinois

    who were sent in to fix the govt on Nov 2010 have a new status in politics. They have been labelled by the left as public enemy #1.

    0-bama and the democrats have used the debt ceiling debaucle and now the payroll tax debaucle to wage a new war against the Tea Party with the MSM in full collusion.

    C-Span has become in part, just another tool for the leftists to spew their lies and propaganda, and it appears that the majority of the people who are watching and listening are buying this crap hook-line-and-sinker.

    As 2012 unfolds, the democrats have a new “whipping boy”. Instead of saying “it’s Bush’s fault”, now they can say “it’s the Tea Party’s fault”

  • MikeG

    That’s twice what I currently make in year. I’m in the middle of a career transition (trying to move from retail management to local law enforcement, and working in private security right now to pay the bills while that unfolds), and I would be jumping for joy if I got offered a job making $40K or more. Heck, $30K in my desired career field would merit popping a bottle of bubbly in celebration!

    So, for me, $40,000 is a big freakin’ deal.

  • btpull

    Social Security was meant to be and has always been a self funding program where everyone pays the same rate up to the income cap. The lower rates are transferring funding from the social security fund to the general fund. The 2 month extension introduces are tiered rate approach for the first time in SS’s history.

    Where is the outrage from the Republicans? The only prominent Republican I’ve heard speak against the extension is Michelle Bachmann on the basis of the budget deficit.

  • romansdaughter

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