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
Zeke Miller
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 —
(snip)
(Excerpt) Read more at businessinsider.com ...
That argument plays into Democrat Talking Point #2, as laid out in the article itself: "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."
A case can be made that the payroll tax should never have been reduced to begin with, not for the reasons given. But now that has been, refusing to continue the cuts will play only to the Democrats benefit.
The only thing I can guess is that we are using it as a negotiating chip for later battles.
What most of the working-class doesn’t understand is that the working-class will pay no matter what taxes are divvied out. If the rich pay more, then the working-class makes less. If the rich pay less, then the working-class makes more. It’s as simple as that.
“Actually, the “payroll” taxes are essentially a flat tax.”
If it was a flat tax, somebody making $300K would pay 3 times as much as someone making $100K. But it’s not, is it?
I have to disagree, People that pay NO Federal income taxes and reduced FICA (SS) taxes and are still entitled to SS benefits ARE NOT OVERTAXED when the current benefits are being paid by issuing new US debt to make up for it.
Please see : #11
This is just another popular handout that increases the chance that those 50% that do pay taxes will have to pay more in the future.
“I don’t understand why we are blocking this. It helps play in to the notion that the GOP only cares about the rich.”
Maybe the GOP only cares about the rich.
The payroll tax has been cut for a while and I don't see those Grey Panthers inflamed much. But when people's paychecks go down by 2% on January 1st and the Democrats can say "We tried, but the Republicans blocked it" then I think we'll see a whole other group of inflamed individuals.
There is no way the GOP can block this extension and then argue to extend the current rates on the top two brackets. The GOP should push for spending cuts as an offset but need to be out front that they don’t want any tax rates going up from there current levels.
Exactly. The tax break is on the wrong side, but we couldn’t have greedy employers getting a tax break now could we.
pure gen-i-us...
talk about handing talking points to the commies AND throwing away what little leverage they had...
its to a point where neither side does anything right... even an idiot tends to get something right occassionally, just by statistical coincedence, unless of course its all going according to 'plan'...
ropes and pitchforks ??? anybody ??? or are we gonna just hafta wait in our holes to be slowly smothered under the pillow of fedzilla ???
FICA tax is what allows Americans to demand their SS benefits under the argument that ;"I paid in". But now many that pay no income tax are not even being forced to pay that FICA/SS Federal tax, yet being told that they are still entitled to SS by both parties.
Those people you reference are the first to claim 'they paid in' and that taxes should be raised on the rich to make sure they 'get it back'.
Let it go and cut the federal income tax.
No, In the end they will be the same as the GWB and Obama party, the ‘have your cake and eat it too’ party.
Yes, now YOU are entitled to SS benefits without paying the FICA taxes. Yes Virginia their is a free lunch. And lets demand even more since it is obviously free.
And what about the growing deficit (which current SS benefits adds to) making up for the FICA tax cuts ? Since the the freeloaders are being told they ‘paid in’ anyway, you know what they they will say when asked where to get the money for that....Guess,
I agree! But just try to convince people that they themselves are paying that hidden part. The masses truly believe their employer is paying half their payroll tax and also paying for their unemployment insurance.
NOPE!
You the employee are paying ALL the costs of your employment plus a little more as profit for the company, otherwise you would not have a job.
I think if people truly understood how much government takes from them we would have replaced the government several times by now.
It is stupid to cut it and then borrow the money from China to put it back in the general fund. Only a moron would see that as a sound policy.
This is simply more Class Warfare by the Marxist Regime...
At a minimum Republicans need to make some demands in return for extending these, keep in mind the REAL TAX CUTS expire in late 2012 after the election. Those are real tax increases.
I would leave the reduced rate of 4.2% but would remove the wage limit. In fact, may even go so far as to reduce both the employer AND employee percentages while removing the wage limit.
the WH is trying to prevent another barganing effort by republicans. “too important to cut a deal” BS.
The republican can force Obama’s hand even more.
???
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