Skip to comments.Harry Reid's Jobs Surcharge (A temporary payroll tax cut paid for by permanent tax increases)
Posted on 12/05/2011 9:24:06 AM PST by Qbert
So here's the latest Democratic growth plan: Pay for a temporary tax cut that has already proven not to create jobs with a permanent tax increase that almost certainly will cost jobs.
That's the essence of Senate Majority Leader Harry Reid's plan to finance a one-year payroll tax cut with a 3.25% income tax surcharge on upper-income Americans that would last for at least 10 years. Mr. Reid knows it can't pass the House, and as we went to press it looked likely to fail even in the Senate.
But this is the way it goes in the Senate these days where the real goal isn't to pass anything but to put Senate Republicans on the class-warfare spot. If they vote no, Mr. Reid and President Obama will claim that Republicans voted to deny a tax cut on the middle class. If they vote yes, he'll taunt them for breaking with their tea party supporters and also backing a tax increase.
Early this year the White House cited estimates by Deutsche Bank economists that the $110 billion payroll tax holiday would boost GDP growth by 0.7 percentage points to 4% in the months ahead. This was based on the usual Keynesian modeling. Instead, the economy has deceleratedfrom 2.8% in 2010 to barely above 1% this year. As for the predicted boost to jobs, the unemployment rate has stayed at or above 9%.
Mr. Reid's surchargewhich would hit incomes of $1 million and abovewould slam small business job creators.
Only a fraction of those small business owners and Subchapter S companies will have a net income above $1 million, but Joint Tax finds that 34% of that $1.2 trillion is on tax returns with "modified AGI [adjusted gross income] in excess of $1 million."
(Excerpt) Read more at online.wsj.com ...
Same old RAT technique......”bait & switch”. The RATS only know lying and deception in their efforts to a complete socialist/commie society.
So this surcharge tax will be on top of the investment tax that helps to pay for Obamacare. How many more surcharges are they going to put on “the rich?”
Apparently the “compromise” consists of splitting the difference between the socialists and the Marxists.
Go to Club Med this year & then take the next 10 +++ years to pay for it.
Reid certainly didn’t get any accounting classes along the way!!!