Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

The Most Important Question In Washington: Is A Massive Tax Hike Just A Few Weeks Away? (Spin)
Business Insider ^ | Nov. 11, 2011 | Joe Weisenthal

Posted on 11/11/2011 9:21:38 AM PST by Qbert

There's been a lot of discussion about the deficit super-committee lately, and whether the bi-partisan panel can come up with a package, or whether it's doomed for gridlock.

But whatever they decide to do, the near-term impact on the economy will be pretty minimal. The automatic trigger cuts don't kick in until 2013, and they can be watered down.

[Snip]

But there is one decision that has to be made in a few weeks that absolutely would have an impact, and that's whether the payroll tax cuts that were agreed to late in 2010 will be extended again. Morgan Stanley explains the economic stakes:

[Snip]

The first relates to  extension of the emergency stimulus measures of 2011.

[Snip]

However, these  stimulus measures could be continued through inclusion in a Super Committee deal or an end-of-the-year appropriations bill, commonly known as an “extender bill.”

[Snip]

As for the politics of it, Sam Stein at Huffington Post has a good rundown of the President's strategy. Basically, he's going to make this a central part of his strategy, hoping to make it impossible for Congress to leave on holiday without a deal to avoid having people's taxes raised.

"I find it hard to believe that these members of Congress are going to go to National Airport on December 23 and go home, and basically tell their constituents your taxes are going up $1,000 next year and we didn't do anything to help the economy," said one administration official.

[Snip]

The president and his staff have made little secret of their desire to see the super committee tuck the payroll tax cut extension (along with other elements of the president's jobs package) into that proposal. Democratic aides on Capitol Hill have largely agreed.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: obama; payrolltax; socialsecurity
"The Most Important Question In Washington: Is A Massive Tax Hike Social Security Just A Few Weeks Away from Further Destruction?
1 posted on 11/11/2011 9:21:39 AM PST by Qbert
[ Post Reply | Private Reply | View Replies]

To: Qbert

Silly premise. Anyone have any idea what a massive tax hike would have on our teetering economy? I do. An idea, that is. ;-)


2 posted on 11/11/2011 9:29:15 AM PST by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

Massive TEA Party resurgence.


3 posted on 11/11/2011 9:34:20 AM PST by Paladin2
[ Post Reply | Private Reply | To 2 | View Replies]

To: cuban leaf

Republican or democrat, both parties know that to sustain future outlays of medicare, SS and medicaid, taxes will have to go up.

I’ve heard estimates over a dozen years or so to the tune of 60 Trill.


4 posted on 11/11/2011 9:35:48 AM PST by servantboy777
[ Post Reply | Private Reply | To 2 | View Replies]

To: servantboy777

—Republican or democrat, both parties know that to sustain future outlays of medicare, SS and medicaid, taxes will have to go up.—

Yeah, That’s like saying, after dad has been laid off a year, that to keep the house, the motorhome and the car, dad’s gonna have to increase his income.

We’re stuck. You need an economy for our system to survive, and if you raise taxes you suck the air right out of the economy.

That is why I think we are headed toward the worst socioeconomic collapse in the history of civilization. And soon. I’m really not kidding in my tag line. There is no remotely pleasant way out of this.


5 posted on 11/11/2011 9:43:29 AM PST by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Qbert
The Most Important Question In Washington: Is A Massive Tax Hike Reduction of Government Just A Few Weeks Away?

Sorry....my hopes in an alternate universe, I suppose.

6 posted on 11/11/2011 9:47:31 AM PST by IrishPennant (We don't want to work so we go to work to make enough money not to work...Huh?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

It appears that spending must be cut (a lot) and tax revenue must go up. How can that happen when demand for everything goes down? It could get ugly...


7 posted on 11/11/2011 9:49:58 AM PST by refermech
[ Post Reply | Private Reply | To 5 | View Replies]

To: Qbert; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; NFHale; ...
RE :"But there is one decision that has to be made in a few weeks that absolutely would have an impact, and that's whether the payroll tax cuts that were agreed to late in 2010 will be extended again. Morgan Stanley explains the economic stakes:....The first relates to extension of the emergency stimulus measures of 2011. ....I find it hard to believe that these members of Congress are going to go to National Airport on December 23 and go home, and basically tell their constituents your taxes are going up $1,000 next year and we didn't do anything to help the economy," said one administration official. "

The sad thing is that Democrats will/would tag this as Republicans raising taxes on the poor and middle class (9-9-9 was attacked by Republican candidates along the same theme), and Republicans dont have the guts to get on TV and say that FICA is a Social Security tax, intended to fund SS (ie 'entitlement' DUHH).

They let live the liberal lie that a 'social security surplus trust fund' is funding those borrowed payments, as if congresses and POTUSes would think of saving a dime for a future congresses and POTUSes .

8 posted on 11/11/2011 9:52:47 AM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
[ Post Reply | Private Reply | To 1 | View Replies]

To: sickoflibs

Yep.

All you have to say is the truth: the Dems want to gut Social Security.


9 posted on 11/11/2011 9:55:50 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Qbert

Let me see if I got this straight..... several months ago the legislation to extend the debt limit, and also created this so called super committee, was the best deal they could get. These same people knew this was about to expire, and they knew the so called super committee would have to put it into a package, or it would mean an automatic tax increase. The dems wanted a tax increase all along. Now, if spending is not increased, the dems walk out of the supercommittee, and blame the republicans for the tax increase... Either way, the republicans got snookered (again, surprize surprize) the dems get their tax increase, the dems got their debt ceiling raised, and we, the taxpayers, pay the price for incompetent republican leadership, or lack therof.... we have been screwed, and the beltway people will go out to dinner ( on the taxpayers dime ) then get chauffered home ( on the taxpayers dime )then crawl into their nice beds in their nice homes ( paid for on the taxpayers dime ) then get up, to go work, and sit in a newly remodeled office, usually remodeled to the tune of 20 to 40 thousand dollars ( taxpayers once again )........... now, would somebody tell me why republicans are any different then the lib commie dems????


10 posted on 11/11/2011 10:10:21 AM PST by joe fonebone (Project Gunwalker, this will make watergate look like the warm up band......)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Qbert; ding_dong_daddy_from_dumas; stephenjohnbanker; DoughtyOne; calcowgirl; Gilbo_3; NFHale; ...
RE :”All you have to say is the truth: the Dems want to gut Social Security.

What is perfect about your suggestion is it is short and sweet. In fact my lurking visits to DU show that many of them are worried that Obama cutting FICA will in fact kill SS, so you get to divide them for a change.

11 posted on 11/11/2011 10:13:23 AM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
[ Post Reply | Private Reply | To 9 | View Replies]

To: Qbert

How about a math exercise here?

Say there are 100 million people working in this country.

Say they are only making $10 an hour. ( I realize many are making more).

Say they work 40 hours a week or get paid for 40 hours a week.
That is 2040 hours a year.
At $10 an hour, that is $20,400.00 annually in gross pay.

Times 100 million is a national gross of $2,040,000,000,000.00 or 2 Trillion, 40 Billion gross dollars in payroll.

Using the flucuating 2% of Social Security payments from that payroll gross, that ==$40,800,000,000.00 or $40 billion, 800 million a year which will NOT get put into the Social Security fund.

That much money & much more has already NOT gone into the SS fund & many sources are telling us that SS is overdrawn as I type this.

Continuing this madness will only push this country over the edge all the sooner.

Keep in mind that I used only $10 an hour for wages. The Hollywood elites probably would supply this gross payroll on their own.


12 posted on 11/11/2011 11:04:54 AM PST by ridesthemiles
[ Post Reply | Private Reply | To 1 | View Replies]

To: cuban leaf

We’ve already witnessed the largest transfer of wealth in world history from America to China.


13 posted on 11/11/2011 11:06:35 AM PST by servantboy777
[ Post Reply | Private Reply | To 5 | View Replies]

To: servantboy777

—We’ve already witnessed the largest transfer of wealth in world history from America to China.—

And the only real way out is to monetize our debt. And that sows the seeds of a very bad ending.


14 posted on 11/11/2011 11:21:16 AM PST by cuban leaf (Were doomed! Details at eleven.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: sickoflibs

I maintain there simply is no money in a SS trust fund. That was ended long ago. The entity may exist as a name only at this point. When either side talks about this fund as existing and that on paper at least it has some 2.4 Trillion dollars in the account, they are deceiving people.


15 posted on 11/11/2011 1:26:31 PM PST by Marine_Uncle (Honor must be earned.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Marine_Uncle
RE :"I maintain there simply is no money in a SS trust fund. That was ended long ago."

When Reagan raised FICA taxes to create a SS surplus (contrary to how Newt claims it happened) that money was spend immediately by the government, leaving a worthless IOU to itself. It is about as real as the deficit reduction compromise trigger.

It is amazing that people STILL take those in DC seriously, thanks to the media.

16 posted on 11/11/2011 1:36:51 PM PST by sickoflibs (Cain :"My parents didn't raise me to beg the government for other peoples money")
[ Post Reply | Private Reply | To 15 | View Replies]

To: sickoflibs

That is what I had in mind.


17 posted on 11/11/2011 2:13:42 PM PST by Marine_Uncle (Honor must be earned.)
[ Post Reply | Private Reply | To 16 | View Replies]

To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks Qbert.
But there is one decision that has to be made in a few weeks that absolutely would have an impact, and that's whether the payroll tax cuts that were agreed to late in 2010 will be extended again.

18 posted on 11/11/2011 4:40:47 PM PST by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | View Replies]

To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

(oops) Thanks sickoflibs.


19 posted on 11/11/2011 4:41:48 PM PST by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Qbert; All

It amazes me that the GOP is taking a stand for higher taxes.

I will be very angry if I have to come up with an extra $80-100 a month in my budget when no raise is coming and the budget’s already tight.

They better accept the holiday even if Obama gets credit. It does not look good to be for a tax hike.

The fact that many on FR are opposed to the tax holiday when they would have been for it under Bush just shows how much ideology can blind, but look....I really don’t care who proposed it. We need it again or the economy will get even worse. It probably well even with it, but let’s at least keep it from getting as bad as it can get.


20 posted on 11/23/2011 6:41:41 AM PST by rwfromkansas ("Carve your name on hearts, not marble." - C.H. Spurgeon)
[ Post Reply | Private Reply | To 1 | View Replies]

To: rwfromkansas

"The fact that many on FR are opposed to the tax holiday when they would have been for it under Bush just shows how much ideology can blind, but look....I really don’t care who proposed it. We need it again or the economy will get even worse. It probably well even with it, but let’s at least keep it from getting as bad as it can get."

It has nothing to do with what party suggests it: They've already done this numerous times before... has it improved the economy one bit?

21 posted on 11/23/2011 8:57:46 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
[ Post Reply | Private Reply | To 20 | View Replies]

To: Qbert

Don’t know, but I know we would be hurting even more without it. Have to cut the budget even more.


22 posted on 11/23/2011 10:18:58 AM PST by rwfromkansas ("Carve your name on hearts, not marble." - C.H. Spurgeon)
[ Post Reply | Private Reply | To 21 | View Replies]

To: rwfromkansas

"Have to cut the budget even more."

How can you "cut the budget" when the payroll-tax cut leaves social security funding in an even worse position?

23 posted on 11/23/2011 10:42:49 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
[ Post Reply | Private Reply | To 22 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson