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Tag Archives: Payroll Tax Cut

In the last few days and weeks we’ve been hearing a lot about the payroll tax hike/cut.  Lately the pitch has ramped up for two reasons.  One, the Senate was ale to negotiate a bipartisan agreement to extend the tax cuts.

For 2 months.

Now, most recently, the House Republicans have declined to accept that compromise.  They voted Tuesday to reject the Senate deal and are asking for the two bodies to meet in committee.  We’ll see who blinks.

However, for me, what has been lost in all of this is why the Democrats are fighting for a tax cut to begin with?  I certainly understand the whole “We-They” thing, after all, the whole payroll tax cut idea was the Democrats brain child.  But why, at all, do the tax more, big state liberals want ANY tax cut?  Especially one that funds their most precious social program, Social Security?

Why?  Because Social Security is SO broken, so in debt and so “no chance of survival” that the Democrats feel they have little to lose.  In fact, they KNOW the government will “bail out” Social Security.  So, in some perverse way, the payroll tax cut can be seen to be a stimulus program.  Albeit not a perfect one.  For starters the more you make the more it benefits you.  And, you have to actually be working to benefit.  But other than that, any money not sent to Social Security is just added to the bill that Congress will eventually pay.

Rascally Rabbits!

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So, I get the hinge.  The Democrats in the Senate won a vote to extend the payroll tax cut for 2 months.  The House GOP doesn’t like that bill and wants to vote on one of their own.  They want the tax cut to be longer than 2 months, more like a year:

The fourth-ranking House Republican argued Tuesday that a two-month extension of the payroll tax cut “would do more harm than good.”

Now, in so far as we can reduce the tax burden for a s long as we can, I resonate with the good Mr. Hensarling, Rep from Texas.  What I don’t understand however, is why even such a relatively short extension of a year is thought to be THAT much better.  If you’re gonna end the tax, end the tax.  A temporary reduction is just as random and unpredictable if it’s 2 months or 12.

I’m a little disappointed in both parties over this one.