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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (1353)	10/8/2003 3:59:29 PM
From: russwinter	Respond to of 110194

Yes, I would supposes that true, but on the otherhand wages usually increase a couple percent a year too, so the wage increases (if any) probably about cancel out the lower tax? Expanded Tax Brackets: For married couples, the first $14,000 of income (up from $12,000) is now taxed at 10%, and more people will find themselves in the 15% tax bracket: Married couples who earn $56,800 (up from $47,450) and singles who earn $28,400 or less. These increases will save you $1,000 a year in taxes if you are married with a taxable income above $56,800. Singles with taxable income above $28,400 will save $500 a year. Lower tax rates: The top four rates have been reduced, retroactive to January 1: If you were in the 38.6% bracket, you now pay 35%. If you were in the 35% bracket, you now pay 33%. If you were in the 30% bracket, you now pay 28%. If you were in the 27% bracket, you now pay 25%.

To: Joan Osland Graffius who wrote (1353)	10/8/2003 6:37:59 PM
From: russwinter	Read Replies (2) \| Respond to of 110194

OK, Joan, Biderman adjusts the raw withholding numbers by 4% to reflect the tax cut and give the American worker's after tax wage. So the absolutely flat raw numbers of 169,118 (03) versus 169,132 (02) we're seeing from 8/22/03 to today's release 10/7, would translate into 4.0% after tax wage growth (but for the same number of workers, not new ones), which keeps Americans just a little ahead of the so called CPI number of 2-2.5% (which many would argue is understated). I think these numbers just illustrate how bad things would have been without the tax cut. The problem with the tax cut however, is that it has contributed to another leak in the dam (the twin deficits and more borrowing from foreigners, as the US savings rate can't be increased in this scenario). I really have to believe they were hoping for some real wage and employment growth by now? And it ain't happening, despite the enormous "controlled" media hype and pump. And how about going forward? Are they going to cut taxes in 2004 by like amount to keep Americans ahead of inflation (which I feel is picking up), and run up the twin deficits even more? I think the wheels are coming off. I will post the weekly raw number here every Friday.