Taxation Without Lubrication
Posted by MichaelGroff on January 14, 2013 | Filed under Podcasts
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By now many Americans have received their first paycheck of the new year. Following the election and campaign promises that the middle class would not be hit by tax increases it probably came as a surprise to many of you that your paychecks are now a bit smaller. A broken promise? A tax increase? Well, the simple explanation is that the payroll tax holiday that was activated over a year ago has expired. This 2% reduction in taxes was meant to help stimulate a flat-lined economy but it did have a sunset date which was January 1, 2013. Many believed that congress would extend this exemption period through this year, but as part of the rush to avert the “fiscal cliff” the payroll tax holiday was a mere afterthought to most lawmakers and now the middle class taxpayer that the president supposedly cares so much about and that Republicans are evidently ignoring, now gets to shoulder the burden.
But this is old news! Get ready for another tax increase that will hit the middle class muchharder (and every economic strata for that matter). Unlike the payroll tax, this one doesn’t affect income directly, but you will see it’s impact almost immediately. In an effort to further generate revenue, the Obama administration and some lawmakers are considering an increase in federal taxes on gasoline. As it is presently, the feds impose a tax of 18.4 cents per gallon on every type of fuel. Additional taxes are levied by individual states and thus there are great discrepancies in fuel costs among the states. The government is proposing the federal tax rate should be increased to 46 cents per gallon. The justification is to cover the ever increasing costs of repairing and maintaining America’s highways and bridges.
Americans, who feel that gas prices are already at nearly budget breaking limits, will likely react rather negatively to this news and certainly the justification doesn’t seem to fit a nearly 150% increase in the federal gas tax. Nevertheless, the impacts will be far reaching, food prices, shipping, airfares/travel expenses will be the first parts of the economy to be affected. Estimates are that the gas tax increase will cost the average American well over $100 per year at the pump alone, but when you factor in grocery costs and the general price of commerce, the consumer will certainly see a substantial cut into their own budget. Too bad that most of us can’t use the federal government’s strategy of printing up more money to cover our debt.
Also on This Episode
– Internet pioneer and reddit creator Aaron Swartz commits suicide: Facing more than three decades behind bars and millions of dollars in fines and legal action, Swartz seemingly felt he had no other options. It’s an unfortunate story of aggressive prosecution for a “crime” that was never really committed. The DoJ has ultimately dropped it’s case against Swartz, which was rather nice of them considering that he is dead. Many activists claim that this isn’t the end of the line and are now demanding real justice for the over reaching prosecutors on the case.
– Somewhat embarrassing: Being caught shoplifting, Totally humiliating: Caught shoplifting a “super sucker” from Spencer’s. If you’re wondering, a “super-sucker” is not a lollipop and it is most definitely not something you want to be known for stealing.
– Bon Jovi releases more new music and while it’s pretty mediocre it is nowhere near today’s installment of Worst Song of the Week.
January 15, 2013 at 7:33 pm
Great episode!
The Aaron Swartz situation really is a tragedy, I think we will all lose out having lost him so young. The US government really has to step back and have a look at themselves when it comes to the harshness with which they pursue these kinds of cases – when at most, the only laws he probably broke were to do with the copyright of the publishers of the journals. MIT need to have a decent look at themselves too, and realise that the way to deal with the embarrassment of how easily this was done is not to go after a 26 year old innovator and activist who made ‘public’ information actually available to the public. Very sad indeed!
As for Justin Timberlake, I’m pretty sure that now he’s married Jessica Biel, he’s decided there’s no need to try to act masculine.
August 22, 2015 at 2:41 am
So horrible when a person takes their life. The pain never goes away just effects those who are left behind. Such a same that a young man felt his only way out was taking his life.
Spencer’s Gift stores, are interesting to say the least. But to be arrested for stealing a super sucker for your um yeah i get the picture…Dude really? How embarrassing!
Never been a big Bon Jovi fan. His music is okay.
Justin Timberlake and Jay-Z’s song is okay…it has a nice groove. But that one isn’t one of my favorites.
As always very entertaining :) <3