cooperating, and on top of that, you have the sequester in washington that is also a drag on the economy. given all these drags, it s going to be very hard to get that many jobs. you know, as part of the fiscal cliff, americans saw their pay roll taxes jump. that works out to about $1,000 less for a typical household making $50,000 a year. a new study finds the rise in taxes is going to find the average household cutting their spending by an average of $720. there s the fiscal cliff and also the payroll tax holiday that went away. you re a longtime proponent of stopping the first $1500 of the taxes. do you think that would be good for job growth? yes, if we lose some government by exempting the first $15,000 for social security, you lift the lid on the percentage of or the amount of money subjected to social security taxes. and that would be not only good
don t feel bubbly yet. so we ll continue to watch here. stocks are rising but the deficit is falling. the constant source of political bickering in washington is plunging. the congressional budget office says tax collections are up 16% from november to april. why? because they re taking more money out of your paycheck. the payroll tax holiday ended and so you re putting more money into the government coffers. spending is down slightly, as well. some of that is the sequester, those forced spending cuts. spending in some categories is up like medicare, medicaid, social security. so no, john, that doesn t mean the end is over, the fight about money in the nation s capital. washington looking for money, this woman is giving her fortune away. that s right. her bottom line, so to speak. sarah blakeley is the youngest self-made billionaire in the world thanks to spanx. she invented it and has made a boatload of money off of making women feel slimmer. she s giving half her money away in the jo
take a look at this. i think we ve seen the impact of the sequester already. today s numbers, and other indicators coming in, show us the resilience of the u.s. economy. i think if it weren t for the sequester, the economy would be in even a stronger position. sir, what s your take on that? is really the rubber going to hit the road perhaps this month or in the summer months, where the effect is really going to be felt? well, alan kruger is correct in as much as the sequester is just beginning to take hold and that is undoubtedly a drag on the economy. we don t know and won t know how big a drag on the economy, but the sequester combined with the rise in payroll taxes that is the end of the payroll tax holiday in january, means that consumers and overall demand in the economy not nearly what it would be otherwise. in other words, if government simply got out of the way, did not cut the budget deficit, did not raise taxes, this economy would be stronger right now, undoubtedly. m
realizes we have to deal with that problem. the fact is the president doesn t again chain cpi it s a nice little step, it gets about 200 billion or so over the next ten years which is a drop in the bucket. half of that by the way is revenue and it s adds to the tax increase on the middle class. the president got one of those back in scan in the fiscal cliff deal with attacks increase hit about 77% of people who pay taxes because the payroll tax holiday went away. that its basically what the president wants, more taxes, a little fiddling around the edges on entitlements and a higher deficit. this is a key thing that sally can t deny, it s in black-and-white in various graphs in the budget itself. a higher deficit than we would have if we just did nothing. that s what he wants for the rest of his administration. jenna: why would we want that, sally? i would remind rich that paul ryan s house budget proposal also would increase the deficit. no it eliminates it in ten years, that s unt
them having less to spend because the payroll tax holiday is gone and so now they have less money coming in every week, d. they ve had less since the beginning of the year. but now we ve also had a few months of fear mongering. washington gging back and forth, and talking about all the cuts they have to make and how absolutely horrible it s going to be, and while neil: do people really seize on that? i m not going to go to the department store. are you kidding me? absolutely seize on that. it s a combination of the amount of money you actually have to spend and that perception comessed into play, should i be spending now? there is a good outlook for me in the future? the jobs number keeps looking better but that s optics bass the jobs that are create aren t very high-paying jobs. so when people feel like i ve got a job but it s not make me that much and i m not sure i ll get another job, they re less likely to spend. neil: but the data is such