Tax increases force me to cut spending

Feb. 13, 2013

By John Seiler

In State of the Union address yesterday evening, President Obama said, “Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line.”

What “tax relief” is he talking about? Joined by the “small government” and “tax-cut” Republican leadership in Congress, on Jan. 1 he massively increased taxes on 77 percent of Americans. That was part of the “fiscal cliff deal” — really a fiscal ripoff — that jacked up payroll taxes 2 percentage points. Those making just the minimum wage usually don’t pay income taxes; but they sure pay the payroll tax.

He talked a lot about helping the “middle class,” but most people will pay about $1,000 more a year. In a two-earner household, that’s $2,000 more a year that won’t go toward kids’ education, a down payment on a new home, car repairs or other essentials. Instead, the money will be sucked in by the D.C. lobbyists and government functionaries who are draining the country of its life’s blood.

As I wrote about a month ago, I’m meeting the massive tax increases by cutting spending. Today I just canceled Netflix DVDs. Savings: $8.63 a month. Sorry, Netflix workers.

While doing so, I also noticed that Gov. Jerry Brown’s Proposition 30 tax increase had boosted that bill by 2 cents a month. Not much, but it adds up on other purchases. For example, I just had an unexpected car repair bill of $1,450. About $1,000 of that was for parts, meaning Prop. 30’s sales-tax increase of 0.25 percentage points “on the rich” dinged me for $25. I’ll be cutting spending big time for that, and not just for the $25.

Next week, I’m canceling my Financial Times subscription. Savings: $39.90 a month. I can get similar information elsewhere, for free. Sorry, fellow journalists, I can’t afford you now.

Tax backers

By the way, Netflix CEO Reed Hastings and the FT are big tax-increase supporters. So they should blame themselves for the loss of my custom.

I’ve also cut back on eating out by half, to once a week. I’ll probably cut that back even more. Although my culinary skills are on the level of the Three Stooges, if you don’t have the money, you don’t have it. Sorry, restaurant owners and workers.

I still have to make more cuts in spending. When government revenues shrink, politicians go on spending sprees paid for with more robbing the people and more debt.

My reaction is different: cut back to live within my means.

In the State of the Union, the president brought up tax increases numerous times.

And on NBC, Rep. Steny Hoyer, the House Minority Whip, just said more tax increases are coming: “Does the country have a spending problem? The country has a paying for problem. We haven’t paid for what we bought, we haven’t paid for our tax cuts, we haven’t paid for war.”

Well, “we” didn’t “buy” that — the spendthrift Congress did, beginning with him. “I” don’t want any of what he “bought” with my money. So, Steny, don’t steal more of “my” money to pay for it!

But he will anyway.

As in January, no doubt the Obama-Hoyer tax-increases eventually will be supported by the Republican leadership, and imposed on us.

Time to cut more of my spending.

In the comments below, write what spending in your life you’re cutting so our Masters in Government can live better at our expense.