White House considers payroll tax holiday

washingtonpost ^ | September 3, 2010 | Ezra Klein

[Dubya-M-DeesWent2SyriaStupid!]

The White House is considering a push for hundreds of billions of dollars in new stimulative spending, focusing on business tax cuts including a temporary cut in payroll taxes. In part, this is good policy. In part, it's necessary policy. Anne Kornblut and Lori Montgomery quote an unnamed Democratic strategist complaining that the White House has let the issues get away from them in advance of November's election. "'We did the mosque, Katrina, Iraq, and now Middle East peace?' said a Democratic strategist who works closely with multiple candidates and spoke on the condition of anonymity. 'And in between you redo the Oval Office? It has become a joke.'"

[Dubya-M-DeesWent2SyriaStupid!]

As the wise Charles Krauthhammer said last night about this. This is an Obama desperate political ploy that is using Republican ideas for votes in the Nov. election. He said it won't work to save Obama and the democrats.

Too much, too little, too late.

Even if it were to happen it would be like taking money from Sam to pay Paul to give to Peter to pay Sam back.

[Dubya-M-DeesWent2SyriaStupid!]

""'We did the mosque, Katrina, Iraq, and now Middle East peace?' said a Democratic strategist who works closely with multiple candidates and spoke on the condition of anonymity. 'And in between you redo the Oval Office? It has become a joke."

Quote of the day!

[bcsco]

Not to mention vacations in Spain and Martha’s Vinyard, the sixth this year. Maybe this ‘strategist’ didn’t want to rub it in too much...

[major-pelham]

I’m thinking this is a trap - typical divide and conquer libtardism. They make payroll tax exempt for the first $xx. They make it infinite on every dollar earned up to $5 billion. The exemption becomes permanent and the number exempt creeps higher. In the end you end up with 100 million Americans more with zero skin in the game. The class warfare grows. Those that don’t pay get to vote against and extract more and more form those that do pay. In this way the overwhelming majority becomes dependent on the lefty’s. And the American experiment becomes irretrievable.

[Diogenesis]

There will be NO holiday from US Taxpayers building mosques
in foreign lands.

Caliph Hussein Obama says it is our ONLY purpose.

THE REAL DEAL

BLS Data Series

U-6 unemployment
Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	7.1	7.2	7.1	6.9	7.1	7.0	7.0	7.1	7.0	6.8	7.1	6.9
2001	7.3	7.4	7.3	7.4	7.5	7.9	7.8	8.1	8.7	9.3	9.4	9.6
2002	9.5	9.5	9.4	9.7	9.5	9.5	9.6	9.6	9.6	9.6	9.7	9.8
2003	10.0	10.2	10.0	10.2	10.1	10.3	10.3	10.1	10.4	10.2	10.0	9.8
2004	9.9	9.7	10.0	9.6	9.6	9.5	9.5	9.4	9.4	9.7	9.4	9.2
2005	9.3	9.3	9.1	8.9	8.9	9.0	8.8	8.9	9.0	8.7	8.7	8.6
2006	8.4	8.4	8.2	8.1	8.2	8.4	8.5	8.4	8.0	8.2	8.1	8.0
2007	8.3	8.1	8.0	8.2	8.2	8.2	8.3	8.5	8.4	8.4	8.5	8.8
2008	9.1	8.9	9.0	9.2	9.7	10.0	10.5	10.9	11.2	11.9	12.8	13.7
2009	14.0	15.0	15.6	15.8	16.4	16.5	16.4	16.8	17.0	17.4	17.2	17.3
2010	16.5	16.8	16.9	17.1	16.6	16.5	16.5	16.7

[dirtboy]

Cut payroll taxes? Last I checked, Social Security was in the red.

So of course this would be used as justification for not extended the Bush tax cuts to make up the difference.

[tanknetter]

Even if it were to happen it would be like taking money from Sam to pay Paul to give to Peter to pay Sam back.

It would be an exact repeat of Cash for Clunkers and the Homebuyers Credit: produce a short-lived bump followed by a big crash that produces results in the near-term but lots more pain in the mid-long term. Analysis (more accurately: stating the obvious): this is an attempt to use Federal tax policy to buy the Nov elections.

The only things that'll really work are structural, and permanent, tax and spending cuts.

The problem isn't that companies and people aren't spending. That's just the symptom. The problem is that, with the Bush tax cuts set to expire and the overall statist behavior of this Administration, companies and people have NO CONFIDENCE in long-term economic prospects.

[justlurking]

Just so that everyone is clear:

The only "payroll tax" in effect (at the federal level) is Social Security and Medicare. You currently pay 1.45% of all income, and 6.2% of the first $106,800 (per year).

Social Security is already paying more benefits than it is receiving in taxes. It's projected to be that way this year and next, then return to a positive cash flow until 2017, when it goes permanently negative.

When the cash flow goes negative, then Social Security must draw on it's 'trust fund'. Since that's just an accounting fiction, the money has to come from the federal income taxes, or increase the budget deficit further.

I think that reducing the payroll tax is a good idea, but I'm curious how it will be implemented: i.e. will it only be reduced on the first $50,000 of income, or something like that.

And I'll point out the obvious: it will put Social Security even more out-of-balance.

[UK_Jeffersonian]

They couldn’t possibly have figured out that lowering taxes on the productive class will stimulate growth. This is an obvious desperation ploy for the elections.

[FrankR]

This is just more obama bull$hi+; typical liberal election time, bait-and-switch, trickery to peel off a few votes of the chia pets out there.

Economically, it's a stupid move too...with all the jobs that have been lost, revenues are obviously already in the toilet, and he wants to "holiday" payroll taxes? Don't be fooled, he will use that loss of funds as an excuse for another "stimulus" just after the elections.

Payroll tax holidays will not fix what is wrong with America. Obama and the progressives are what is wrong with America. We're not sticking out our necks and investing in employees, materials, or goods until we have someone in charge who will get government out of the way. Obama is NOT that person.

Did he say anything about extending the Bush tax cuts? If he didn't, then it's proof that this payroll tax thing is a ploy.

obama's biggest problem is, he done way too much damage, stolen way too much of our money, ruined the economy, lied time and time again, and no one believes him anymore.

Everyone should send him a printout of "The Boy Who Cried Wolf", because that is EXACTLY where he stands now. I don't even know anyone who will leave the TV or Radio playing when he is on.

He's sickening and disgusting and low class, blowing $50 grand a week on parties and vacations while we wonder where the next meal is coming from...he can kiss where the sun don't shine for all I care.

[SunkenCiv]

Speaking of shoring up the base, thanks bereanway.

Thanks Dubya-M-DeesWent2SyriaStupid!

[matt1234]

Oooooooooooh! I’m gonna get me some of 0bama’s stash!

[shiva]

ROTFL!

[Gritty]

Another trillion dollars in deficits. What's not to like about this plan?

[JPG]

You'll remember that during the presidential debates when it was pointed out to O’Slacker that lowering tax rates actually resulted in an increase in revenue to the treasury, he replied that that wasn't the issue. No, it was all about “being fair”. Typical Marxist brain at work.

[MarkL]

The White House is considering a push for hundreds of billions of dollars in new stimulative spending, focusing on business tax cuts including a temporary cut in payroll taxes.

Yet another example of the political and media "Dumb-Masses" (thanks Neal) not understanding, or possibly even obfuscating the fact that cutting taxes is NOT spending!

There are far too many in government, media, and unfortunately, the public that don't understand that finances consist of TWO modes: Income and Expense. Changes in taxes will effect income. Changes in spending effect expense.

Mark

[RockinRight]

Had this been done before, and in lieu of, any of this “stimulus” or bailout crap, it would have probably worked, and I’d have supported it. Also would have had less effect on the deficit...

However, it’s simply just more crap now.

[Trust but Verify]

Between the husband and I, we’d ‘save’ about $900/month by not paying into SS and Medicre. Sounds nice, doesn’t it? I’m against it 100%. Like we need to make those programs more insolvent than they already are! What I’d rather see is for those clowns in Washington to QUIT WASTING MONEY! CUT SPENDING!

[napscoordinator]

They only take money for SS up to 106K? Why not have every thing earned then SS is saved? I know everyone here is against SS but if we can save it then it is a non issue for the Democrats!! HINT HINT. Sometimes you have to be smarter than the Democrats.

[Dubya-M-DeesWent2SyriaStupid!]

The Obama family are vacationing at Camp David.

It must have tough on Barry Hussein to make the decision to spend spend spend pass more stimulus crap and blame Bush and the republicans.

He blamed the republicans for NOT passing some jobs bill.
SOMEONE CORRECT ME IF I AM CONFUSED but aren’t the democrats the majority they have the votes to pass anything they want at 3AM and not read it. So HOW COULD Obama blame the republicans? Am I missing something seriously?