House to Pass Payroll Tax Relief for Rest of 2012

ATR ^ | 2012-02-13 | Ryan Ellis

[92nina]

The U.S. House this week will vote on H.R. 4013, a bill which will continue payroll tax relief for the remainder of 2012.

In all of 2011 and through February of 2012, the Social Security payroll tax rate nominally paid by employees has been reduced by two percentage points, from 6.2% to 4.2%. For someone earning $50,000 annually, this has reduced their FICA tax by $1000 over the year.

Americans for Tax Reform is supportive of this extension of payroll tax relief:

• Now is not the time for workers to see their take-home pay decline because their taxes went up. If Congress does nothing, workers will see their FICA tax rise in the first pay period of March. People will see this tax increase immediately, and want to know who raised their taxes.

• Senate Democrats and the White House have rejected spending cut offsets to payroll tax relief. The House GOP has tried to attach spending cut offsets to extended payroll tax relief. In the face of absolute obstinacy by Democrats, the House GOP is left little choice but to pass stand-alone legislation to prevent FICA taxes from going up in the middle of the year.

• While a spending cut offset is ideal, it is not necessary. It doesn't "cost" taxpayers anything to let taxpayers keep their own money. It's not fair to subject tax relief to the same need for spending cut offsets that conservatives rightly demand of new spending programs. The latter is a new burden faced by taxpayers. The former is easing the burden on taxpayers.

• It's the middle of the year, and families have set their budgets. It would be capricious and unfair for Congress to pull the rug out from under them for purely political reasons. Changing tax policy now, in the middle of a year, is the definition of bad tax policy.

• Congress should consider replacing the payroll tax relief next year with Congressman Jeff Landry's (R-La.) "SSPICE Act" (H.R. 3551). This bill would allow workers to choose whether they wanted to keep their payroll tax relief (in exchange for a higher retirement age), or pay taxes normally and expect Social Security benefits normally. That would take the choice out of the hands of politicians in Washington and put it in the hands of workers. But that's a 2013 concern. For now, the FICA tax relief should simply be extended through the end of the year.

Read more: http://www.atr.org/house-pass-payroll-tax-relief-rest-a6730#ixzz1mNI7tkyE

[92nina]

The graduated extension expires this month unless extended...

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at Digg and at Reddit and in Stumbleupon and Delicious

[avacado]

I simply do not understand the Democrats willingness to decrease funding for Social Security (their baby)???

[cotton1706]

Idiots. They should at least make it expire at the end of the fiscal year. But they fall into the Christmas trap every time. And they’ll need a lame duck session after the election when (please God) a number of congressmen and senators will be packing up for good. And those that will have nothing left to lose will vote for it again. And Obama will still be president at Christimas one way or the other.

Boehner and Cantor need to go!

[GeronL]

GOP phasers are set to “surrender”

[justlurking]

Frankly, I think this is politics at its worst.

But, I understand why the GOP is doing this. They were castigated last time for insisting that the payroll tax be paid for with spending cuts.

This time, they are right to just extend it, with no restrictions. Then, they can put the responsibility on the Democrats for holding it up.

[NoPinkos]

...or pay taxes normally and expect Social Security benefits normally

...or hand Lucy the football normally and expect to kick it normally.

Only a real blockhead would take that option.

[PogySailor]

Somehow the GOP insiders believe they will be able to hold Obama and crew accountable for record deficits and debt.

Fat chance with the “Truth Teams” spinning in the media

[BfloGuy]

This time, they are right to just extend it, with no restrictions.

No. They're wrong. It shouldn't be extended at all.

It's 1/6 of the funding for Social Security. If they can't make that clear, they really do need to be thrown out.

[justlurking]

No. They're wrong. It shouldn't be extended at all.

Actually, I agree with you. But, this is a case where the GOP might win the battle, but would lose the war.

The Misleadia will demagogue the Republicans for increasing taxes on the poor and middle class, while fighting to preserve the "Bush tax cuts for the rich" (never mind that the poor got a tax cut then, too -- reducing their federal tax bill for some of them to less than zero).

I thought I read that Santorum has suggested that the payroll tax be restored, but give wage earners the option to contribute that extra 2% to a 401(k) instead of Social Security (reducing the wage base used to calculate benefits). I think that's a great idea, but the Democrats would never allow it.

[BfloGuy]

I thought I read that Santorum has suggested that the payroll tax be restored, but give wage earners the option to contribute that extra 2% to a 401(k)

Congress could fairly easily let the Social Security cut expire and implement an income tax credit in the same amount. Of course, it's academic since the Social Security Trust Fund has all been spent anyway.