April 21, 2005
Well, it turns out to be nothing more than another fable. Just another fabrication by people wanting to support the government and who believe that if you say it and say it often enough people will jump on the bandwagon and it will become true.
Payroll taxes are immediately deducted from workers checks and most of the larger companies submit these monthly. Many smaller companies may wait until the last minute, April 15th, to send theirs in, but the patterns tell us immediately about the job situation in America, especially Social Security taxes simply because they are the lions share of payroll taxes.
Heres the way it looks so far this year:
Six months into fiscal 2005 and we are almost exactly duplicating last years performance, and last year was a bad year for jobs.
In fiscal 2004, excessive payroll taxes generated a $71 billion surplus for the Beltway Bandits to blow elsewhere. Nothing like the $98.7 billion surplus they received from Social Security overtaxes in 2001 before the job market started to plummet.
Optimists can claim that at least the situation isnt worsening, maybe weve bottomed out, and maybe things will get better soon.
Pessimists can claim that people are accepting jobs that pay less just to put food on the table and try to meet their obligations, many have simply dropped out, youngsters needing about 150,000 jobs a month just to keep up with population and immigration increases are finding it hard to find worthwhile jobs, and the industrial backbone of this country is going overseas.
On March 17th, CNN Money reported that "Initial claims for State unemployment insurance aid fell to 318,000 in the week ended March 12 from a revised 328,000 the prior week" and hailed this as a sign things were improving. That's weekly folks.
The truth is that the Bush administration has turned to borrowing us to the hilt and American workers or their children will have little way to pay back this debt. What was once the safest investment in the world because it was backed by every taxpayer in the nation has now entered the realm of risk.
Between April first and April thirteenth, weve borrowed another $35 billion from investors foreign nations, big pension houses, and a few of the wealthy looking for a safe haven. Thats a continuation of the $3 billion a day in additional debt that simply cannot continue.
for more to come. April, which was once the month of windfalls in income
and payroll tax receipts, has been a disappointment for the government
three years in a row. But that doesnt stop them from planning and
approving a $2.57 trillion budget for 2006 when last years receipts
were less than $1.9 trillion, a planned gap or deficit of at least $700
billion once you add emergency war needs.