Skip to comments.GOP May Block Payroll Tax Cut Extension That Obama Claims Could Save Up To 1 Million Jobs
Posted on 08/22/2011 6:45:17 AM PDT by blam
GOP May Block Payroll Tax Cut Extension That Obama Claims Could Save Up To 1 Million Jobs
Aug. 22, 2011, 9:32 AM
The Associated Press reports that congressional Republicans are considering allowing the payroll tax cut to expire at the end of the year a move President Barack Obama says could cost up to 1 million jobs.
The tax, which funds Social Security, now stands at 4.2 percent for employees for 2011 down from 6.2 percent and GOP lawmakers, worried by rising deficits and the nation's booming debt, are gearing up to block extending the reduced rate through next year. The employer contribution remains at 6.2 percent.
"It's always a net positive to let taxpayers keep more of what they earn," said Rep. Jeb Hensarling (R-TX), "but not all tax relief is created equal for the purposes of helping to get the economy moving again."
But their worry about debt and deficits did not prevent the lawmakers from demanding the continue the Bush tax cuts on wealthy Americans if they were to be extended for those with lesser incomes.
The payroll tax cut most benefits employees making less than $106,800 a year including those whose incomes are so low they pay no income tax, but still have their payroll tax withheld from their paychecks.
Earlier this month Obama said Congress failing to extend the tax break and unemployment benefits "could mean 1 million fewer jobs and half a percent less growth."
Neither Speaker of the House John Boehner (R-OH) or Senate Minority Leader Mitch McConnell (R-KY) has taken a public position on the issue.
Obama says, the extension of the payroll tax cut would bring the average American family an additional $1,000 each year
(Excerpt) Read more at businessinsider.com ...
A million jobs here, a million jobs there, and pretty soon we’d be talking about full employment. /s
When Obama pulls a number like “1 million jobs” our of his rear end the Republicans should counter with an imaginary 2 million jobs from one of their initiatives.
Times about 30!!!
Actually, the “payroll” taxes are essentially a flat tax. It may be a good thing to have more than 50% of America paying some kind of (effectively an) Income Tax. Skin in the game and all. It’d be good to eliminate the “hidden” part “paid” by employers and make it an explicit deduction to help folks understand the total theft rate of the US Government.
"Gosh, Beav, ya big goof. The AP is nothing more than a propaganda arm of The DemocRAT Party and will do or say anything that makes Republicans look bad so-as to improve President Obama's chances of getting re-elected. Ain't they teachin' you nuthin' at school?"
Obama’s numbers may be totally bogus, but as a political issue for 2012 this is playing into the Democrats claim that the GOP only wants tax breaks for the wealthy and don’t care about anyone else. Leave the tax cut in place until the economy turns around.
The GOP (Ghost Of a Party)need to noisily block something.
All these cruds went to the same, Stalin School of Economics.
As I have posted many times this is the stupidest tax cut that creates no jobs and just leaves SS funded by issuing more US debt. But what is Republicans argument for opposing this handout going to be since they support the myth that SS is fully funded by a trust fund?
Yes the FICA tax cut is a handout because those getting it are still entitled to SS upon retirement,and many getting it pay NO Federal income taxes at all , and so far no-one in congress has challenged this. .
Sorry, I have to agree with 0bamao on principle with this one.
We are TAXED ENOUGH ALREADY!!!
The correct conservative response is NOT to raise taxes, but to CUT SPENDING!
Of course, 0bamao has no intention of cutting spending, but I agree with him that we should not raise taxes.
Let the pressure to cut funding build. They will eventually have to do it.
It is like the money Clinton kept finding all over the different budgets.
Yeah, because we have like forever to get the deficit under control before the US treasury has to default, all paper assets become worthless, martial law is declared and the ensuing civil war starts.
The GOP should counter by doing away with the extension and make it permanent. So the democrats can’t use it as an issue again. That’ll shut them up and the people get to have more money in their pocket permanently.
It isn’t going to help the already unemployed one bit.
I should know.
“I agree with him that we should not raise taxes.”
It’s only restoring the employee pension contribution that should never have been reduced!
Tax the shit out of the poor, they are the ones consuming the taxes!
The GOP is on solid political ground by blocking this scam.
“...many getting it pay NO Federal income taxes at all...”
Except for FICA of course. But that’s NOT an income tax. It’s a payroll tax. And the difference to someone paying it is...?
The simple way to say this is that if the employees get the tax cut and the employers don’t, there’s no incentive for employers to create more jobs. Yes, the employees have more revenue to spend in the marketplace which might cause more economic churn, but it isn’t one that incentivises the employers to do anything.
Truth is that employers aren’t hiring for 1) fear of another recession and 2) fear of all the ObamaCare red tape that is coming. That’s why unemployment has been largely stagnant because government (largely Dems) refuses to remove those fears.
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