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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
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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.)
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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)
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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.)
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