The consumer economy will also be hit by the so-called “Fiscal Cliff” deal which ended a temporary one-third cut in workers’ Social Security payroll taxes. Workers are again paying 6 percent of their paychecks for Social Security taxes, costing them 2 percent of their paychecks through 2013.
Today’s shocking news prompted renewed calls by Republicans for Obama to work with them to revive the stalled economy, which has only grow 7.5 percent in since mid-2009.
“Obama mentioned ‘economy’ one time in his inaugural speech. Why isn’t he focused on jobs?” said a tweet from the National Republican Conference Committee, which works to elect Republicans to the House of Representatives.
“Obama’s Jobs Council hasn’t met in over a year. Why isn’t he focused on jobs? … Obama has delayed approval of Keystone Pipeline jobs for a year. Why isn’t he focused on jobs?” is later tweeted.