Thread: Pay Freeze Announcement

Originally Posted by Dr Faustus

Can someone explain this to me ...

The President indicated that the proposed pay freezes will save 2 billion in the first year, 28 billion over 5 years and 60 billion by 2020.

How is that possible with a 2 year freeze on pay? More government accounting???

compound interest on those two years savings??...at what rate tho???....too early to do the math

Let's just think CUT IN PAY, if workers would have gotten 4% over 2 years then a 2% raise in 2013 would be based on a salary that is 4% less than it would have been if they have received the raises in 2011 and 2012, and so on and so on!
Really a TAX!

I wonder if any of the figures include savings from reduced future annuities.

Wha...no it's not a tax, it's a pay freeze. Sheesh. As for the COLA increase, I was doubting it anyway, with one calculation for Social Security ending up with no increase, and our COLA with a 1.4% increase; what's this, Coca COLA and Pepsi COLA, same thing, tastes different? Bleah, New Coke, right?


Seriously, do you know of anyone in the private sector, and we aren't talking about CEO's, that got a pay raise over the past few years? We are just hurting later.

As a result we will see a marked increase in performance awards and quality step increases. If they really wanted to save gov't money, they should give us supervisors the ability to actually fire people who don't do anything but suck the gov't teet.

SB, could you please explain the difference between a 1.4% tax on government workers and a cancellation of a 1.4% raise in pay. Attachment 10258

If our heroic decisionmakers had not decided to "save the banks" at the expense of taxpayers, the national debt wouldn't have experienced exponential increase in the past couple years.

In fact if interest rates had not been kept so low for so long, the housing bubble wouldn't have occurred and banks wouldn't have put themselves at risk of going belly up. but they did, and knowing the gov has their back regardless what they do-means screaming gov debt puts us all in crisis.

tax base declining due to people being out of work, people retiring meaning income tax base declining further. where's the money going to come from for any pay raises-China. do we really really want to keep going to that well?

Even if all discretionary part of the budget was cut today, tax receipts won't cover the nondiscretionary part of the budget, not at this point. the pay freeze reduces the amount needed to borrow, doesn't mean absolute amount not still increasing.

Originally Posted by nnuut

SB, could you please explain the difference between a 1.4% tax on government workers and a cancellation of a 1.4% raise in pay. Attachment 10258

Sure, your employer has just cancelled your pay raise. Your income tax did not change. The only reason there is confusion here at all is your employer happens to be the U.S. Government. If we expanded this logic to States, then the Furloughs in some States would be a non-monetary State Tax for State Employees - of which there is no such thing. It's an employment and pay issue.

I am not arguing that it isn't a kick in the butt for no good reason, but they do that in the private sector too, for even less reason. You want a pay raise for inflation? HAHAHA!

Originally Posted by alevin

If our heroic decisionmakers had not decided to "save the banks" at the expense of taxpayers, the national debt wouldn't have experienced exponential increase in the past couple years.

In fact if interest rates had not been kept so low for so long, the housing bubble wouldn't have occurred and banks wouldn't have put themselves at risk of going belly up. but they did, and knowing the gov has their back regardless what they do-means screaming gov debt puts us all in crisis.

tax base declining due to people being out of work, people retiring meaning income tax base declining further. where's the money going to come from for any pay raises-China. do we really really want to keep going to that well?

Even if all discretionary part of the budget was cut today, tax receipts won't cover the nondiscretionary part of the budget, not at this point. the pay freeze reduces the amount needed to borrow, doesn't mean absolute amount not still increasing.

That's because the banks are using one payday loan to pay the other, and the fees keep adding up.
It's the new American way!

Originally Posted by Silverbird

Sure, your employer has just cancelled your pay raise. Your income tax did not change. The only reason there is confusion here at all is your employer happens to be the U.S. Government.

Sweet darling bird -- since this is a very RARE moment where I'm actually in flight myself -- like a bird ....

Let me dazzle you with a few 'insights' - to further your cause -- cause you are as smart as they get.

There is another reason for the confusion It is called prejudism and that my sweet -- makes it impossible to remotely acknowledge the 'real truth'. You see if:

a person is convinced that a 'Democrat' can only 'do wrong' and does not have the ability to do anything right -- then they by virtue of their inner belief - will always strive to bash the Dems and - support the Reps.

In the same light -- if a person:

is convinced the USA is perfect and everything they do is honestly for the sake of 'Good and Justice' - THEN anytime anyone would bring out the absolute - undeniable 'Hidden Facts' - to make The TRUTH known ... they will be called 'unpatriotic' - and resented for exposing something so huge they can't deal with it.

So my dear -- now that I'm flying -- The reason for confussion is because prejudism always ignores the Truth.

If we expanded this logic to States, then the Furloughs in some States would be a non-monetary State Tax for State Employees - of which there is no such thing. It's an employment and pay issue.

You would be hard to argue with - I mean hey I like that.

I am not arguing that it isn't a kick in the butt for no good reason, but they do that in the private sector too, for even less reason.

The Private Sector is way worse. Did you know I had to pay for every Investment Transfer I ever made until I became a Federal Employee and started messing with the TSP. I was 'shocked' to find I could make 'unlimited transfers' totally FREE.

I have benefits out the wa zooo -- plus 'security' the private sector can't come close to touching.

You want a pay raise for inflation? HAHAHA!

Why are you laughing ???

I would like a pay raise for that -- shoot and I wouldn't mind having a raise for other things too --

I wouldn't mind if they had to reduce the free handouts and tax the big guys to do it.

Well, I'm not use to this flying stuff so I'm heading back down. Bye

Originally Posted by Dr Faustus

Can someone explain this to me ...

The President indicated that the proposed pay freezes will save 2 billion in the first year, 28 billion over 5 years and 60 billion by 2020.

How is that possible with a 2 year freeze on pay? More government accounting???

Sure, retirement pay. With a pay freeze over the next two years, you'll have to pay less to retirees. I know a few people who have been sitting on the fence about retirement, waiting to see what raise they'll get next year. With the pay freeze, they may just retire soon, instead of waiting it out.

Another reason it will give retirees less pay is that even if they decide to continue working for the next two years, the calculated benefit of the "high three" will be less because there were no pay raises.

Which brings up the fact that another recommendation made by the deficit panel was for changing the "high three" average calculation to a "high five." That would also have a negative affect on retiree pay, saving more money down the road.