Skip to comments.WSJ SLAMS House Republicans For Payroll Tax Cut Debacle, Says ...Throwing 2012 Election To Obama
Posted on 12/21/2011 8:19:29 AM PST by Qbert
The conservative Wall Street Journal editorial board is slamming House Republicans today for their hard-line position on the payroll tax cut, writing that GOP lawmakers are throwing the 2012 election to President Barack Obama before it even begins.
House Republicans are refusing to pass the bipartisan two-month extension of the tax cut that passed the Senate on Saturday, demanding a year-long increase. But Senate Majority Leader Harry Reid says he'll only reopen negotiations on a longer deal once the House passes the Senate bill and removes the immediate threat of a tax increase for most Americans.
The Journal's advice: Pass the tax cut and fast:
At this stage, Republicans would do best to cut their losses and find a way to extend the payroll holiday quickly. Then go home and return in January with a united House-Senate strategy that forces Democrats to make specific policy choices that highlight the differences between the parties on spending, taxes and regulation. Wisconsin freshman Senator Ron Johnson has been floating a useful agenda for such a strategy. The alternative is more chaotic retreat and the return of all-Democratic rule.
The Journal's criticism of Boehner will only strengthen the Democratic position, and is sure to be trotted out by Democrats and even some Republicans to pressure the Speaker to pass the bill and put an end to the legislative nightmare. That said, Boehner hasn't caved to Democrats yet, and is likely to take these negotiations up to the brink.
(Excerpt) Read more at businessinsider.com ...
The WSJ has apparently gone to the Dark Side.
The WSJ is right. Nothing good could possibly come from refusing to pass the extension.
While the general bent of the WSJ tends to be conservative (economically, at least), their editorials are not always so. Mark this as a prime example.
What in the world has happened to the WSJ?? Are they nuts?
It isn’t a tax cut, it’s a cut in Social Security funding.
IE it’s a social security cut. C’mon repubs.
It’s redistributing income tax payments to cover a purposely created shortage in social security funds.
Regardless of how stupid the GOP might be Obama has no chance of being reelected unless Ron Paul is the nominee. Stealing from the SS funds to fund a tax holiday was not a good idea in the first place now funding it for two month to argue another day is not as well. I hope the House sticks to their guns but I am not holding my breathe.
They always turn to cowards in the end at the the WSJ.
PS A LOT more attention needs to be put on the $$$$ being taken from Social Security!!!!!!!!
The Republicans pass a ONE YEAR tax cut extension in the house...
Which goes to the Senate where THE DEMOCRATS block it and instead pass only a 2 month extension...
and this is the Republicans fault... how?
And why aren’t the Republicans screaming about how Obama is taking funds from social security~!!!!!!!!!!!!!!!! with this ‘tax cut’
Geez Boehner is stupid if he can’t bat this one out of the park. Would someone please give him a clue?
Or please vote him out of office of Speaker.
Tell that to the payroll processors whose systems are designed to handle different tax rates within the same fiscal quarter.
Let me see if I get this.... If we don’t give Obama everything he wants he will win the election.... ok thats pretty clear. Lets just lay down our arms and surrender now. the should make the establishment happy...
Who are these F-—ing people , other than cowards and statist
I had to turn off Fox ,they had Democrat after Democrat ,all on script blaming the Republicans , I think I’ll watch movies for the next year LOL
Note to self: read "Note to self" in tagline.
I believe the WSJ is right on this editorial. This was just bad marketing. We all know that in the end, the cut will be extended. The House and Senate Republicans needed to have a more cohesive plan, they didn’t do it, and their message was lost. They are allowing Obama (no matter the truth) to play a soundbite that is ridiculous, but as usual the Repbulicans don’t have a clear message of rebuttal!
The House’s argument for its actions is rational and easy to understand. They want to cut the tax for a year. The Democrats only want to cut it for 2 months. If you cut the tax for only 2 months that creates immense headaches for the people who have to implement it. Not so for the year long tax cut the Republicans have proposed.
Boehner is not up to the job. There does not seem to be any strategy. And the WSJ is delusional if they think the stupid GOP leadership is going to follow Ron Johnson - they already put establishment-friendly Roy Blunt in as Conference Vice-Chair ahead of Johnson, and despite a frenzied Tea Party push for Ron. The GOP is going to hand this election to Obama.
If the House Republicans cave on this it will make them look bad; if they let the tax expire it will make them look bad. IMHO, Poor planning by Bohnner and McConnell
Must be a very large constituency I guess.
WSJ leans leftist but sometimes looses its grip and falls down..
but sometimes they back into something conservative and trip.. and fall down..
WSJ spends a lot of time on their Knees.. quite handy to democrat Presidents..
The payroll tax cuts are NOT the way to go about relieving the tax burden on the middle class, or anyone else.
It robs from SS payments without making the necessary cuts to SS.
And two months is a joke.
Good luck reprogramming all the payroll systems to accomodate this stupidity.
Stand your ground men!
"Why is the House at fault? A two month extension is ridiculous. It might as well be a 2 week extension or maybe the WSJ would be happy with a 2 day weekend extension."
Yep. And notice how the report by payroll processors, that a two-month extension would be simply unworkable, has been completely disregarded by the WSJ and everybody slamming the House Republicans?...
Exactly. If it's so important why not make it 6 months or a year? This is nothing more than the rats posturing, as usual.
The WSJ is right. Nothing good could possibly come from refusing to pass the extension.
Why. So the Democrats can do this every two months until the election? Talk about shooting yourself in the foot.
IE its a social security cut. Cmon repubs.
“What in the world has happened to the WSJ?? Are they nuts?”
They are a bunch of Corporatists, and they want to set this up so that they can get their guy the nomination.
It would certainly not be Republicans shooting themselves in the foot. Republicans should be about keeping taxes low. And anyway...this mess was not all Democrat doing. There are 47 Republican Senators if I'm not mistaken.
“return in January with a united House-Senate strategy that forces Democrats to make specific policy choices...”
In January the Dems will hold all the cards and will get a tax increase “on the rich” to pay for the payroll tax cut.
Do it now.
I am not sure how having this lapse for a week or two in January would bring the world to an end politically, however it all depends on how Boehner and house members can play this up on TV calling Obama and the Senate back versus Obama who is accusing them of tanking the economy on purpose.
Boehner made the mistake of agreeing to the Senate bill, or at least looking like he did only to come back to a rebellion making him look weak and playing into Democrat talking points. That is what makes me think he will still cave in the end.
RINOs giving "sage advice" to conservatives on how to beat liberals.
"And why arent the Republicans screaming about how Obama is taking funds from social security~!!!!!!!!!!!!!!!! with this tax cut
Geez Boehner is stupid if he cant bat this one out of the park. Would someone please give him a clue?
I think he's secretly terrified that Obama will get angry if he does...
Yeah, splain that to the no-nothings. If taxes go up and the independents don't blame the Republicans I take it all back.
Gimme a break, the overwhelming majority of Americans don’t even have a clue about what’s transpiring at this moment in D.C. and the overwhelming majority of Americans won’t remember this “issue” in 6 months anyways, and I can guarantee you much more “important” and spectacular battles lie ahead prior to the election.
Yup. Hard to understand how people don't see how badly the politics of this is working against House Republicans. They are out on a limb with nowhere to go - and now if the payroll tax cut expires it will be blamed squarely on House Republicans. Boehner obviously thought the deal with Reid and McConnell that included Keystone would be enough to win over House Republicans. He was either wrong, or House Republicans balked under constituent pressure. Either way, it is obvious the House GOP is going to have to cave. Amazing how we turned a perceived win (getting Keystone included and removing millionaire surtax) into a giant freaking PR disaster.
SS funding was supposed to be via "contributions" ie payroll taxes. It isn't [anymore] of course - which is one thing that is important to point out. This proposed funding cut deteriorates our ability to pay benefits. Our payments were promised as a retirement safety net - of course we know the payments were absorbed by the general fund and replaced with IOUs - which btw don't by food or medicine.
All funding for Social Security goes into the general fund.
No, it doesn't. It goes into the Social Security Trust Fund whereby it is immediately swapped for US debt.
All funds paid out to Social Security recipients go out of the general fund.
Yes, hello... that is the point. The payments should NOT go out of the general fund. Shorting the trust fund even further simply ensures that payments will be made from the income taxes of those who actually pay them. It's another redistribution scheme. Get it?
Do you also think there is a lockbox?
Also believe what? And no, there is no lockbox. There is only an "escrow" for SS revenues - and they revenues are immediately [if not sooner] transferred to general fund with a debt swap. Nothing is locked at all.
Separately, who peed in your cheerios this am?
"I kind of agree with them. The Senate Republicans caved and left the House out in the cold. With the Senate gone there are only two options; let the Tax expire or agree to the two month extension. The House and Senate should have been united on this months ago with a planned strategy."
I'll agree with that.
“We all know that in the end, the cut will be extended”
Yep, and we all know it’ll be extended again in January. And that in January, just like now, the Senate Rs will cave to the Dems.
So why not do it now? Fighting for a year’s extension is better than just fighting against a “tax on the rich”.
I can understand it when Democrats support a 60 day tax cut that can't be implemented, but I am very surprised to see that it has vocal supporters on FR. Who'da thunk it.
“In January the Dems will hold all the cards and will get a tax increase on the rich to pay for the payroll tax cut.”
Exactly. It’s Lucy and the football all over again.
“Funny how the WSJ always brings out the long knives against Republicans anytime there’s a showdown like this in Washington.”
Well, they know how BHO/Dems will use this against us in the campaigns. It’s true. Alarming how MANY people out there are so ignorant to the facts, don’t do any research and only believe the MSM’s spin about the “do nothing (i.e., Repub) Congress” and “refusal to cooperate” by the Republicans.
There are many sides to this particular issue. On the one hand, a temporary 2-month anything is bad for businesses who need to do long-term planning. And the Dems will continue to pass BS bandaid bills, knowing the Repubs won’t go for them and thus look even worse in the public’s eyes. On the other, WHY do Repubs want a year extension of cuts in the only source (other than borrowing/printing money) of funding for Social Security? (Even Allen West is for this.) Rush was talking some about this yesterday, but I missed most of it.
So, help me out here - who’s right?
BS! The House Republicans need to stand firm on this one. They are in the right and everyone knows it, so why cave?
Any tax cut would thereby be a “funding cut” for Social Security that would deteriorate our ability to pay benefits, using that calculus.
There is not a Social Security “trust fund”. All payroll taxes go directly into the general fund and are then spent - with 3 dollars spent for every 2 dollars going in overall.
How can you “short the trust fund further” when... wait for it.... THERE IS NO TRUST FUND.
Trust fund = lock box. There isn’t either one.