economy

The economy is finally coming around and one of the big reasons is fracking. This new process for getting oil and natural gas has created new jobs not just in the energy business but in other areas surrounding energy. As the price of natural gas continues to decline, this will help the bottom lines of many other manufacturing businesses and this will add more jobs and all of these jobs will help the housing market to recover. Add to this the increase in payroll tax, a tax on the poor, and the combination of increased growth and increased taxes will lower the deficit. There is room for some irony when you realize that the President will get credit for these changes even though they come mainly from fossil fuels and taxing the poor and middle class. As one might expect the two percent increase in payroll tax will bring in more money than the so called millionaires tax since there are so many poor and middle income people, many of who pay no income tax. In addition, miracle of miracles, the federal spending actually decreased by 1.9% thanks or no thanks, depending on your view to the sequester. Next job is to work on entitlements. Maybe there is a grand bargain down the road following the Bolls/Simpson plan.