To congressional Republicans: How to reverse your Social Security ‘payroll Tax Cut’ train wreck

December 24, 2011 | sickoflibs

[sickoflibs]

Watching Republicans plod along so aimlessly is just painful.

[King Moonracer]

Those spineless fools buy into the righteousness of the moochers, and don’t realize saying “No” is heroic.

[TwelveOfTwenty]

How can you Republicans turn this around and put Democrats and Obama on the defensive?

The Republicans did just that by getting the Democrats to vote FOR extending the tax cuts for two months. How are Obama and the Dems going to campaign to reverse them two months from now after campaigning FOR them?

[sickoflibs]

I don't want to see congressional Republicans continue to be beat over the head on this issue next year, as with this year. They need to change strategy. Need to head this off at pass:
Will Democrats revive millionaire surtax? (Here we go again...)

So my idea on this is above.

[sickoflibs]

RE :"The Republicans did just that by getting the Democrats to vote FOR extending the tax cuts for two months."

The Republicans forced Democrats into voting for a two month extension that just passed after Boehner caved??? Have you been following this closely?

[Fireone]

Oh yeah, let the gov’t “run” another savings/retirement account for me. They’ve done so well managing the rest of the country’s finances, I trust them completely.
How about, take less of my money and let me manage it?

[CPT Clay]

I like it.

[sickoflibs]

RE :"Oh yeah, let the gov’t “run” another savings/retirement account for me. They’ve done so well managing the rest of the country’s finances, I trust them completely. How about, take less of my money and let me manage it?"

If you read it closely the proposal allows you to keep the Obama/Democrat FICA tax cut if that what you opt to do.

[TwelveOfTwenty]

Yes. Do you think those tax cuts would have been extended if the House was still under the control of the Dems. Do you think a Senate with a veto proof Dem majority would have voted to continue to keep the tax cuts at all?

The GOP failed to get the tax cuts extended for another year, OK, I admit that. But they got them extended two months WITH DEM SUPPORT, and saved them to fight another day, and the Dems will have to fight to repeal tax cuts they just VOTED TO EXTEND.

[sickoflibs]

RE :"I like it."

Thanks

It puts Democrats on the defensive for a change. Remember that Pelosi still brags about defeating a similar proposal made by Bush in 2007 as being one of her biggest achievements. How could she support it now?

Some Republicans seem to feel that there is a huge victory in losing.

[bmwcyle]

The GOP Congress is run by fools.

[sickoflibs]

RE :"The GOP Congress is run by fools"

Clearly true. I just wanted to point out that they don't have to lose. That there are ways to beat them, not that they will actually learn from their mistakes.

[sickoflibs]

RE :" Do you think those tax cuts would have been extended if the House was still under the control of the Dems. Do you think a Senate with a veto proof Dem majority would have voted to continue to keep the tax cuts at all?
....The GOP failed to get the tax cuts extended for another year, OK, I admit that. But they got them extended two months WITH DEM SUPPORT, and saved them to fight another day, and the Dems will have to fight to repeal tax cuts they just VOTED TO EXTEND."

I don't know what planet you have been on but those FICA tax cuts were initially passed a year ago (December 2010) by a Obama/Democrat super-majority congress and Pelosi House for one year and Obama has been on TV endlessly for months demanding their extension (without spending cuts) calling out Republicans for opposing them, and he will continue the same in two months. Democrats have no intention of letting those lapse until after the election as with the Bush tax cuts.

[LZ_Bayonet]

The Repubs wanted "private" accounts, but the Dems said "no" because diverting the $ would cut support of SS funding. THEN the Dems cut ALL SS funding (payroll tax).

So it would seem this (private investment option)would be a good proposal, except that the Dems will say the Payroll tax money is being spent, which the economy needs; not saved for the future.

[bmwcyle]

I don’t see any future change in them.

[kenavi]

Nice thinking!

"Private retirement account" implies that it will not be gov't that decides how to invest the money.

Please ping me if possible on your future ideas.

[TwelveOfTwenty]

I don't know what planet you have been on

You could have made your point without the sarcasm.

but those FICA tax cuts were initially passed a year ago (December 2010) by a Obama/Democrat super-majority congress and Pelosi House

Granted, I did forget about that, must have been thinking about something else.

We'll see in two months who wins this.

[LZ_Bayonet]

My understanding is that the Payroll Tax doesn't "directly" fund SS. Instead SS receives an IOU from the Treasury for the money collected. BUT, doesn't the lack of a payroll tax mean that SS will not get another IOU? Doesn't this mean that SS will run out of money earlier?

Cutting the Payroll Tax may generate growth in the general economy, but how is that little bit of growth ever going to replace the SS funding which was not paid?

[sickoflibs]

RE :"Granted, I did forget about that, must have been thinking about something else"

Merry Christmas :)

[sickoflibs]

RE :”My understanding is that the Payroll Tax doesn't “directly” fund SS. Instead SS receives an IOU from the Treasury for the money collected. BUT, doesn't the lack of a payroll tax mean that SS will not get another IOU? Doesn't this mean that SS will run out of money earlier?”

Yes, Those two links at the bottom of this post address the phony SS trust fund with the worthless IOUS. This is a huge scam.

Yes, in theory the worthless IOUs get traded in faster. But now some Americans will be putting the money into personally owned retirement accounts (rather than spending it as Democrats want.) This is why Democrats will have to oppose it. And it's an option for voters/workers. Dems would have to oppose an option for voters. You see how the trap is laid for them?

Obama will demand the FICA tax cut extension with taxes on the rich, Republicans will propose spending cuts instead, and Republicans will cave and pass them with no cuts or taxes.
(Actually I think there is a tax on Fannie and Freddie transactions in this two month bill.)