Posted on 12/21/2011 1:26:04 PM PST by IBD editorial writer
Politics: Lost in Beltway wrangling over a payroll tax cut, an ugly reality lurks: Our politicians are plotting yet another raid on the Social Security "trust fund," which is already near insolvency. When will this madness stop?
President Obama and his congressional Democrats know well how bad their spendthrift reputation is among voters as election day approaches. With Obama at sub-50% approval numbers and Gallup reporting Congress clocking in at a record-low 11%, they expect a bloodbath at the polls in November — and maybe another slashed debt rating, too.
What then could be better for Democrats than to be able to claim that deep down, they're tax cutters, too? Just like Republicans — whose corporate tax cuts in 1982 led to an unparalleled decade of economic growth.
But Obama and his Democrats don't want to direct any tax cuts toward investment for long term growth — as corporate tax cuts do — but to hand them out to taxpayers like party favors in the hopes it'll pay off come November. It's a political game, but they have few other options aside from cutting spending.
But there's a big catch: The payroll tax cut they seek is nothing more than taking cash from the back pockets of taxpayers and handing it to them up front.
(Excerpt) Read more at news.investors.com ...
According the the latest life expectancy figures (which are from 2007), life expectancy at age 65 is about 18 years or until age 83 (life expectancy is about 78 years at birth).
Therefore, if the 2030 date should prove accurate, for the first time in history, in 2012 anyone who has not reached the full retirement age of 66 (the point at which they can collect unreduced benefits) can expect to see the trust fund completely depleted within their lifetime.
This is an issue that republicans must shout from the rooftops. If my guesstimates are anywhere near correct, during Obama's first 4 years the depletion date of the trust funds has moved 12 years closer, and the trust fund will be depleted within the predicted lifetime of every man, woman and child who is not already receiving unreduced Social Security Benefits.
THAT is Obama's idea of a "holiday"!
Since not one republican complained when these were called “taxes”, then it’s not likely they’ll win the war over this being a “tax cut”.
However, isn’t the amount paid in related to the amount paid out.
Republicans should be calling this a benefit cut....and use future dollars to explain how the $17 cut today for a new worker equals $120 less (whatever the number) in benefits down the road.
They should be hitting the democrats for cutting workers’ social security checks before they’ve even gotten them.
My god how are these people getting away with all this BULL!
2012 will be the nastiest year of politics in my lifetime.
They certainly know how to cower the Cowardly Repubs.
I think I heard Rush say there was a AP Story about a new tax hidden in this bill. From what he was said there will be a $17.00 per month tax added to mortgages loans for homes valued over $200.000.00. Can anybody confirm?
I think I heard Rush say there was a AP Story about a new tax hidden in this bill. From what he was said there will be a $17.00 per month tax added to mortgages loans for homes valued over $200.000.00. Can anybody confirm?
Yes it’s true.
I believe the plan is to eliminate the ‘EMPLOYEE PORTION’ of the social security tax. Most people swallow the absurdity that the employer pays half of the tax when in reality it simply means that they are paid less than they would be paid if the whole amount were deducted from their pay. Once the ‘EMPLOYEE PORTION’ is eliminated most people will think they are not paying anything so they have no right to demand to receive benefits when they reach retirement age. Then it will become ‘means tested’, at this point the people who are employers and are still paying the ‘employer portion’ on all their employees will NOT be entitled to draw benefits as in most cases their income will be too high to qualify. Only those who think they are not paying in any tax will qualify for benefits. I really don’t know of any other reason to do what they are doing.
All this is a long winded way of agreeing with what you said, “In order to win votes the politicians will probably lower it to zero.”
Take the "tax cut" and make it permanent - a permanent "savings" for working individuals to have their own "retirement savings," didn't Bush propose just such a deal to "save Social Security?".
Didn't liberals excoriate Bush for "stealing" from SS recipients??????
“Yes it’s true.”
So the real reason of this Temp Tax Bill is to hid a Added Value Tax that will fund Bigger Government. I wonder how many of our Elected Reps knew about about this tax? Which leads me to the next questions. If they knew why did they vote for it? If they didn’t know about it, why didn’t they know about. I don’t know about you but I’m going to get an answer from my Reps.
Actually, it would work. As arranged, SS just has to cash in special Treasury Bonds to cover those now on the dole. Sure, that amounts to sucking money from the general fund, but that’s just doing what it was designed to do. At least could legally start weaning the population off SS.
It was the Republicans who put it in the bill. It was their way of funding the ‘payroll tax cuts and u/e extension’ instead of taxing millionaires and billionaires which the Dems wanted to do.
“It was the Republicans who put it in the bill. It was their way of funding the ‘payroll tax cuts and u/e extension’ instead of taxing millionaires and billionaires which the Dems wanted to do.”
I Wouldn’t doubt it. There will be more “Added Value” taxes and the Elected Elite will want to hid that as much as they can. It’s time to throw the tax code out and start over where everybody has much skin in the game as the next.
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.