July 18, 2012
Tags: economic crisis, economy, tax revenue
Rev 6:5-6 NCV When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse, and its rider held a pair of scales in his hand. Then I heard something that sounded like a voice coming from the middle of the four living creatures. The voice said, "A quart of wheat for a day's pay, and three quarts of barley for a day's pay, and do not damage the olive oil and wine!"
“Against all odds, the frameworks of the world’s economic, political, and social systems are being shaken and are beginning to crumble.”
-Jim Bakker in “Prosperity and the Coming Apocalypse”
Our economic woes are not all about what happens in Europe, it’s all about what we do to ourselves. We seem to be on a downhill slippery slant, heading toward an abrupt drop-off, a fiscal cliff that opens up to oblivion.
On Jan. 1, 2013 the Social Security payroll tax will be increased up to 6.2 percent from the present 4.2 percent, under the deal approved Friday by the U.S. Congress.
Federal Reserve Board Chairman Ben Bernanke delivered a bleak assessment of the U.S. economy this week, warning of dire risks surrounding the approaching fiscal cliff. “U.S. fiscal policies are on an unsustainable path. The development of a credible medium-term plan for controlling deficits should be a high priority.”
Taxmageddon might just shock the nation come 2013. The purse-strings are being tightened, thanks to the current administration’s new taxes, Obamacare and the expiration of other tax laws. The United States might be dealt a knockout blow, by the old one-two punch. The battle rages on and the fight continues between the Democrats and the GOP, that some congressional aides are referring to as “taxmageddon.”
In the midst of our nation’s struggling economy, Morgan Stanley said this week, “While our analysts are somewhat less worried about the impact of European bank strains,” concerns about the fiscal cliff are reaching new heights. It is already seeing reductions in business orders and new hiring. “The negative impact of the fiscal cliff uncertainty is becoming more widespread.”
“The results are bleak but clear-cut,” said Stephen S. Fuller, a George Mason University professor. “The unemployment rate will climb above 9 percent, pushing the economy toward recession and reducing projected growth in 2013 by two-thirds.”
There is a report that says that the federal budget cuts that are to take effect in January could cost more than two million jobs and raise the unemployment rate by another 1.5 percent over the next year.
Economists say the automatic actions scheduled to take place at the end of 2012, like a raise in payroll taxes and increased income tax rates, as well as large cuts in domestic and defense spending might just be enough to push this nation over the edge of the fiscal cliff of taxmageddon and back into recession