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I have faced it in the political news. For example here in the comments under the article:

Rowhani's 'path of moderation' also shows limits

What does it mean exactly and why is it called like this?

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Why the downvote? – user4012 Jun 18 '13 at 20:11
@DVK It is by damned demons!.. :) – Persian Cat Jun 18 '13 at 20:46
the answers below could be improved by making reference to "carpet bagger" as a historical slur in US political parlance. – Samuel Russell Jun 19 '13 at 6:14
@SamuelRussell - why do you feel that the two terms are even remotely related? – user4012 Oct 29 '13 at 13:40
Carpet bagger has a long negative political resonance in US politics; "Bagger" as a verb is highly unusual outside of logistics and packaging industries it isn't general lexicon; like "carpet bagger" "tea bagger" is a slur specific to disciplining "upstarts" and "out-of-placers." – Samuel Russell Oct 29 '13 at 20:19
up vote 9 down vote accepted

"Teabagger" is yet another shining example of "civil discourse" by left wingers in America.

The etymology of the word "teabagging" involves a slang term originating in American homosexual subculture (ref-NSFW) involving a specific (typically humiliating based on context) sexual activity between two homosexual males. I won't bother going into clinical details, for Urban Dictionary does that for you. The term first entered popular culture via a gay bar scene in a 1998 comedy/drama movie called "Pecker" and then video game players imitating the act.

The supposedly cultured, civil and enlightened members of left wing political culture (up to and including President Obama, who three days earlier publicly decried the lack of civility in American politics) and supposedly professional journalism (CNN and MSNBC main anchors and PBS senior correspondent, not just some random blogs or forum commenters) decided that this term would strongly elevate American civil discourse if it was publicly and massively applied to members of Tea Party (which was, of course, a political movement named after a famous historical event wherein a quantity of tea cargo was destroyed in protestation of British tax policies).

The nominal reason for this shining beacon of an example of civil, polite and dignified example of political engagement of one's opponents from the American left wing was the fact that Tea Party in 2009 advocated sending - in reminder of said Boston Tea Party - tea bags to elected officials as a "Taxed Enough Already" (TEA) sign.

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let us continue this discussion in chat – user4012 Jun 18 '13 at 14:52

(I'll try and post a less overtly biased and editorialized answer. We'll see how it flies...)

The term 'teabagger' is slang (typically used in the pejorative sense) to refer to those that associate themselves with the Tea Party, which is a movement primarily (but not exclusively) associated with the Republican Party in the United States.

It's a double entendre as it refers to a sex act/prank as well.

UPDATE: It appears some contest the statement that the Tea Party is primarily affiliated with the Republican Party. It's not necessarily germane to the question, but did offer some context as to where the Tea Party sits on the US political spectrum. That statement is based on the fact that of the 100+ US Politicians that claim affiliation with the Tea Party Movement, all are Republican. In addition, of the 66 members of the Tea Party Caucus in Congress, all were republican. As for supporters, per a Gallup poll, "Tea Party supporters are decidedly Republican".

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Please guys - take this to our chat room in the Agora! – Affable Geek Jun 18 '13 at 18:00
@AffableGeek when you delete comments, the 'move to chat' option disappears. Can you auto-move things to chat as an admin? – blip Jun 18 '13 at 18:03
I don't think I have that power - Let me ask @YannisRizos how to do that :) – Affable Geek Jun 18 '13 at 18:07
No, unfortunately we can't. The related feature request is now over 2 years old, and I think it's safe to say that it's not going to happen (and I have no idea why). I have some hope for my own feature request that adds a twist to the process (a comments only lock), but haven't received any feedback from SE yet. /cc @AffableGeek – Yannis Jun 18 '13 at 21:03
I assume they're also unaffiliated with the Communist party. But so what? I'm sticking with the numbers. – blip Jun 19 '13 at 3:25

"Teabagging" is when a male dips his scrotum upon another person's face as an insult. It's commonly simulated in FPS video-games where a victorious player crouches up and down over a player that he's killed.

In the scope of politics, It's a pejorative term for a member of the "Tea Party" which is a movement which is known for it's fiscal conservatism.

one uses the term "teabagger" is used to put extra emphasis on the fact that he/she doesn't take that particular member of the tea party seriously.

The reason they use the word "teabagger" is simply because both Tea Party and Teabag have the word Tea in them

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I'm not sure if I should downvote for incorrectly getting the definition (it's not "waving at"), or upvote for the videogame origin story (which is as far as I know somewhat correct, bit not relevant enough that I was too lazy to chase it down to include in my own answer) – user4012 Jun 18 '13 at 4:51

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