AP: GOP May Allow Tax Increase That Obama Seeks to Block
- Posted on August 22, 2011 at 7:04am by
Billy Hallowell
- Print »
- Email »
Editor’s note: the following is an Associated Press piece looking at the payroll tax.
WASHINGTON (AP) — News flash: Congressional Republicans want to raise your taxes.
Impossible, right? GOP lawmakers are so virulently anti-tax, surely they will fight to prevent a payroll tax increase on virtually every wage-earner starting Jan. 1, right?
Apparently not.
Many of the same Republicans who fought hammer-and-tong to keep the George W. Bush-era income tax cuts from expiring on schedule are now saying a different “temporary” tax cut should end as planned. By their own definition, that amounts to a tax increase.
The tax break extension they oppose is sought by President Barack Obama. Unlike proposed changes in the income tax, this policy helps the 46 percent of all Americans who owe no federal income taxes but who pay a “payroll tax” on practically every dime they earn.
There are other differences as well, and Republicans say their stand is consistent with their goal of long-term tax policies that will spur employment and lend greater certainty to the economy.
“It’s always a net positive to let taxpayers keep more of what they earn,” says Rep. Jeb Hensarling, “but not all tax relief is created equal for the purposes of helping to get the economy moving again.” The Texas lawmaker is on the House GOP leadership team.
The debate is likely to boil up in coming weeks as a special bipartisan committee seeks big deficit reductions and weighs which tax cuts are sacrosanct.
At issue is a tax that the vast majority of workers pay, but many don‘t recognize because they don’t read, or don’t understand their pay stubs. Workers normally pay 6.2 percent of their wages toward a tax designated for Social Security. Their employer pays an equal amount, for a total of 12.4 percent per worker.
As part of a bipartisan spending deal last December, Congress approved Obama‘s request to reduce the workers’ share to 4.2 percent for one year; employers’ rate did not change. Obama wants Congress to extend the reduction for an additional year. If not, the rate will return to 6.2 percent on Jan. 1.
Obama cited the payroll tax in his weekend radio and Internet address Saturday, when he urged Congress to work together on measures that help the economy and create jobs. “There are things we can do right now that will mean more customers for businesses and more jobs across the country. We can cut payroll taxes again, so families have an extra $1,000 to spend,” he said.
Social Security payroll taxes apply only to the first $106,800 of a worker’s wages. Therefore, $2,136 is the biggest benefit anyone can gain from the one-year reduction.
The great majority of Americans make less than $106,800 a year. Millions of workers pay more in payroll taxes than in federal income taxes.
The 12-month tax reduction will cost the government about $120 billion this year, and a similar amount next year if it’s renewed.
That worries Rep. David Camp, R-Mich., chairman of the tax-writing Ways and Means Committee, and a member of the House-Senate supercommittee tasked with finding new deficit cuts. Tax reductions, “no matter how well-intended,” will push the deficit higher, making the panel’s task that much harder, Camp’s office said.
But Republican lawmakers haven’t always worried about tax cuts increasing the deficit. They led the fight to extend the life of a much bigger tax break: the major 2001 income tax reduction enacted under Bush. It was scheduled to expire at the start of this year. Obama campaigned on a pledge to end the tax break only for the richest Americans, but solid GOP opposition forced him to back down.
Many Republicans are adamant about not raising taxes but largely silent on what it would mean to let the payroll tax break expire.
Republicans cite key differences between the two “temporary” taxes, starting with the fact that the Bush measure had a 10-year life from the start. To stimulate job growth, these lawmakers say, it’s better to reduce income tax rates for people and for companies than to extend the payroll tax break.
“We don’t need short-term gestures. We need long-term fundamental changes in our tax structure and our regulatory structure that people who create jobs can rely on,” said Sen. Lamar Alexander, R-Tenn., when asked about the payroll tax matter.
House Majority Leader Eric Cantor, R-Va., “has never believed that this type of temporary tax relief is the best way to grow the economy,” said spokesman Brad Dayspring.
The nonpartisan Congressional Budget Office says payroll tax reductions give the economy a short-term boost. But it says the benefit is bigger if employers get the tax break instead of, or along with, workers.
Some top Republicans have taken a wait-and-see approach, expecting the payroll tax issue to be a bargaining chip in the upcoming debt reduction talks.
Neither House Speaker John Boehner, R-Ohio, nor Senate Minority Leader Mitch McConnell, R-Ky., has taken a firm stand on whether to extend the one-year tax cut.
Most GOP presidential candidates also are treading lightly.
Former Massachusetts Gov. Mitt Romney did not flatly rule out an extra year for the payroll tax cut, but he “would prefer to see the payroll tax cut on the employer side” to spur job growth, his campaign said.
Former House speaker Newt Gingrich said Republicans will fall under increasing pressure to extend the payroll tax cut. If they refuse, he said in a recent speech, “we‘re going to end up in a position where we’re going to raise taxes on the lowest-income Americans the day they go to work.”
Many Democrats also are ambivalent about Obama’s proposed tax cut extension. They are more focused on protecting social programs from deep spending cuts. Some worry that a multiyear reduction in the tax designated for Social Security could undermine that program’s health and stature.
For decades the payroll tax generated more revenue than the Social Security paid out in benefits. The excess was used to fund other government operations. Last year, however, Social Security benefits began outstripping revenue from its designated sources, forcing the program to start tapping its “trust fund” of government obligations.
Popular Stories
MSNBC Host Snaps in Heated Segment: ‘What in the World Is Riskier Than Being a Poor Person in America?’ 684 Comments
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 647 Comments
‘Jumah at the DNC’ Speaker: ‘Muslims Visited America Prior to Columbus’ & ‘It Was a Muslim’ Who Guided Him to the ‘New World’ 523 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 361 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 314 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 175 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 211 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 146 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 300 Comments
Scathing New Ad Capitalizes on Rep. Ryan‘s ’Fading Obama Posters’ Remark 124 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 175 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (116)
AntiLiberal74
Posted on August 22, 2011 at 9:42amMaybe i’m wrong but, isn’t The Blaze guilty of the usual rhetoric coming out of the Democratic party with this headline??? The Republicans are against a temporary reduction in the payroll tax. That’s not a tax increase. Just as extending the Bush tax cuts didnt change the rates, keeping the payroll tax static would not increase rates either. Now, I don’t want to get into the rights and wrongs of this issue. It seems the Republicans are against the temporary reduction only because Obama is in favor of it. It seems to be all about politics. Whatever the case may be, let’s dispense with the misleading rhetoric and try to express the truth.
Report Post »Mizurax
Posted on August 22, 2011 at 10:27amIt’s real simple, Antiliberal74. Letting the “Bush Tax Cuts” end was called a tax increase by the Republicans. So if that’s the case, wouldn’t letting the “Obama Payroll Tax Cuts” end also be a tax increase? You can’t call one a tax increase, and not the other. They either both are, or both aren’t.
You did get one thing right though. This is all nothing but a political game.
Report Post »AntiLiberal74
Posted on August 22, 2011 at 10:44am@ Mizurax. Read the article before you comment.
Report Post »AntiLiberal74
Posted on August 22, 2011 at 10:48amWhen I read this the first few times I didn’t understand that this tax break was already in effect. My bad. I apologize Mizurax. Had a blonde moment.
Report Post »VTDave
Posted on August 22, 2011 at 11:30amKudos ANTILIBERAL74 for acknowledging your oversight. Not many are willing to do that.
Report Post »AvengerK
Posted on August 22, 2011 at 11:39amI don’t believe the GOP is going to be stupid enough to push for this and hand Obama a weapon to use for the 2012 election. Obama is on the ropes right now. The “super committee” (and all it’s constitutional problems) is going to be a bust and S&P will likely downgrade our credit rating further. We‘ve already seen Democrats say they’ll use it to redistribute wealth to minorities.
Report Post »chfields62
Posted on August 22, 2011 at 11:44amIf we adopt the fair tax, all these issues would be moot….But that won’t happen because the IRS will never give up its power…..
Report Post »Mizurax
Posted on August 22, 2011 at 11:46amNo worries, Antiliberal74. Just wanted to make sure we were all on the same page.
Report Post »Bum thrower
Posted on August 22, 2011 at 12:06pmUNTIL the 47% who pay NO income tax, but get ‘redistributed’ income from the Feds (‘earned income credit’; making work pay, etc) you will NEVER get tax reductions or tax reform; WHY? because if it doesn’t effect you. you don’t care!!
Everyone needs some ‘skin in the game’ so when taxes are reduced, EVERYONE wins.
Report Post »BillBow
Posted on August 22, 2011 at 12:21pmYou have to realize that the “payroll tax” that Obama “cut” are actually the payments we make into our Social Security “lockbox”.
So we are actually “saving” less for our retirement since what we pay in is used to calculate what we can take out.
I think it was planned that at the same time the“payroll tax” was “cut” last year to “stimulate” the economy, the income tax withholding tables were increased.
Imagine my surprise when my first weekly pay check after the “Obama payroll tax cut stimulus” started was actually $1 less than before.
When I check into see how this could be possible, I found that even though my Social Security withholding had been reduced by $10.00, the Fed income tax withholding in my tax bracket had been increased by $11.01
I think this is a good example of obamanomics and how they are trying to dupe the people,
Report Post »snidley-whiplash
Posted on August 22, 2011 at 1:30pmLately I have been in question: Blaze/Huffpo, Blaze/Huffpo, Blaze/Huffpo, Blaze/Huffpo, Blaze/Huffpo I just can’t seem to get it straight!!!!!!!!!!!!!!!!!!!!!!
Report Post »LiberalTerminator
Posted on August 22, 2011 at 2:21pmI agree this concept is complicated. But sometimes when they say things are equal, in reality they are not. In this case there are key differences on how those tax operate on the economic system.
But the most benefit to the economy is Bush tax cuts. The payroll tax was designed help social security. So, logically I can see the benefits of this position by Republicans.
Of course we know Democrats will have a field day with this.
But lets not forget, why is the light shining on Republicans for this apparent discrepance. This same discrepancy is also committed by Democrats who now want to cut taxes by repeal of Bush tax cuts?
I see a double standard against the Republicans here and Democrats to scott free.
Reason would say the Bush tax cuts would benefit the economy much better and repealing the tax on payroll will help bolster social security funding. Granted I oppose social security as a big government entity. I would have rather kept my own tax money and saved and/or invested it myself. But from the monstrocity we created, it seems the Republican plan is the best choice. It may not be ideal, but the best.
So, lets’ start blaming Democrats for their real hypocracy here. They are much more guilty than Republicans once all the facts are taken and studied in a reasonable and economical way.
Report Post »portague
Posted on August 22, 2011 at 5:30pmSS is not a lock box and goes to the general fund anyways. Tax increases do not raise more revenue and history shows this. Even when the lowest bracket was hovering around 50% and the highest around 90% the government collected the same %gdp of revenue. The government has collected between 16-18 %sdp revenue for over 60 years regardless of tax code. even the bush tax cut collected that, it dip just uneder 16% initially then rose back to hovering inbetween 16-18%gdp. so regardless of tax cut or increase the government does not seem able to collect more then 16-18%gdp so should not be spending around 25% gdp.
Report Post »Carl1 Supports Israel
Posted on August 22, 2011 at 5:37pmWatch it again…… He is still reading off a teleprompter. Watch his eyes move left to right over and over. That ******* couldn’t talk without a teleprompter!
Report Post »Twisted Mind
Posted on August 22, 2011 at 6:14pmThe republicans ( which I have been one for many years) are making a big mistake. They didn‘t want the rich’s tax break to end but they sure as the devil are going to lay it on the one’s that need the money the most. What a bunch of morons
Report Post »Ruler4You
Posted on August 22, 2011 at 8:28pmIf any one believed the GOP, either backed by the Tea Party or not, when they “promised” during the campaign that they would ‘hold the line’ then you are a fool.
Clinton proved that you can say absolutely ANYTHING during a campaign as long as “you are only trying to get elected”. Big O doubled down on that claim and won decisively.
That definitively delineates the boundless nature of a political campaign (if you are a democrat).
Report Post »Equally clearly defined are the narrow boundaries that restrict the GOP candidates in the same campaign. Double standard? Maybe. But it is what it is. These are the facts, undisputed.
lylejk
Posted on August 22, 2011 at 9:31pmWith that analogy, why didn’t the congress end the Bush tax cuts then? Of course this is a tax increase. Many here know that I am a Conservative taxed enough already sympathizer. GOP better extend this one too or they will be deemed hippocrates to the extreme and might as well give the BO back his seat. We don‘t need more money taken out of personal income by the Federal Government and especially if it’s the GOP that is leading the way to this. Sorry; this one’s on the GOP and they better extend this tax benifit. ‘Nough said.
Report Post »Jero
Posted on August 22, 2011 at 10:05pm@CHFIELDS62 Although I agree the fair tax might be a good solution, the IRS isn’t the power here. They just do what they are told.
Report Post »sWampy
Posted on August 22, 2011 at 9:38amIf they would just do away with all minority set asides, they could cut at least 20% from the total federal budget without reducing a single service. These 8A nobid contracts, and 8A contract firms are nothing more than redistribution of wealth. The government wants to buy a dell/apple/ibm laptop, they contact dell/apple/ibm get a price, then call minority owned company that tacks 20-35% of the price, and buys it from dell/apple/ibm and has them ship it to the government. It’s win win for everyone but the taxpayer. The government employee gets bonus at end of year for spending money with minority firm, gets bonus for spending 35% more than necessary, money is redistributed to “deserving pot smoking blacks”. On the labor side, they hire programmers/engineers/etc through 8a firms that pay the actual contractors often 1/4 or less what the government pays. The government will pay the minority owned company say 400k a year for an engineer, the 8a firm will pay the engineer 80k, take 80k, donate half to the dnc pac, half to the rnc pac, give the government employee nfl/nba tickets/cruises/etc, and pocket the rest.
Report Post »oldoldtimer
Posted on August 22, 2011 at 9:50amDon’t forget that many of the minority owned companies are actually fronts for white owners. they put a blk in upper mgmt for looks and usually with no authority.
Report Post »seljo1701
Posted on August 22, 2011 at 12:19pm@PEPPA: Please educate yourself. I work in the realm of DoD contracting and I know for a FACT that “setasides” exist if you are of the correct skin color or anatomy. See the following links. From the horse’s mouth, not mine.
http://www.va.gov/OSDBU/
Report Post »http://www.sba.gov/content/8a-business-development
AJAYW
Posted on August 22, 2011 at 9:30amI agree with SCRAPMAN however the VAT tax will never happen– everyone would have to help pay for the freedoms we have. There are so many not paying anything at all which is not right. Everyone should be paying something
Report Post »bill oswald
Posted on August 22, 2011 at 9:26amCut federal payrolls back to the level when Flop Ears became president. How’s that for a prosed savings.
Report Post »We are Americans
Posted on August 22, 2011 at 8:55amHey congress. How about you stop
Report Post »the spending! Why do these people get
paid?seriously does anybody know how
much congressional salaries and benefits
are worth a year?I’m not including the
bribe money from lobbyists
Tree
Posted on August 22, 2011 at 9:11amAgreed, the problem isn’t just taxes, it’s living within our means. If Congress AND Americans spend more than they make, that’s trouble there. Whereas if we all are more frugal in our spending, then a slight tax increase on everyone shouldn’t be a problem, and would actually help the country IF Congress also stops their spending spree.
Report Post »ashestoashes
Posted on August 22, 2011 at 9:38amI like Ron Pauls ideas about stopping all financial aide to other countries except for Israel. I don’t like his no income tax but a flat tax on everything that we buy. That could turn into a nightmare and would result in tremendous inflation. An accountant once told me that if everyone paid just 8% of their income, that it would get us out debt…but then that was before Bush left office and Obama came in. Bush didn’t have a lot of time, but he made a hugh mistake, and then you know the rest of the “on roller skates to hell” story.
Report Post »ashestoashes
Posted on August 22, 2011 at 10:01am@WHEREAREYOURBRAINS the 2008 elections were for show only. Clinton started the Acorn and subsidiaries when he was in office and Obama was out training and working it. The Saul Alinsky‘s Rules for Radicals’ (dedicated to Satan) was the playbook that he and Hilary adhere to. I would say that his election was proof that it works and that we are under a tyrannus government. Congress has little relevance. I would be very surprised if this could ever be changed. they are too infiltrated. As far as a flat tax…have you gotten a load of the people on welfare, not even counting the illegals? Can you imagine not paying them? It’s like we are funding a huge prison where the prisoners (criminals) are free. And if you don’t pay them, well…things are going to get really ugly. They never worked and by golly they are never going to because we “owe ” them a living.. and they will get their money one way or another. Think…Katrina
Report Post »whereareyourbrains
Posted on August 22, 2011 at 8:54amIt bothers me more that they have by-passed congress and the senate with 12 chosen people to try and decide where our country should go. We have just lost our voting right by way of Obama’s law. The KING is getting his way even thought the congress was under control of the GOP. They pulled a little trick and are using the rancor as a reason to change our constitutional rights. We elected these people and all of them are suppose to take care of the problems. Not 12 elites. Because Obama and Reid could not get the congress to go their way…they instituted this plan and now we are powerless. Don’t believe me…watch and stand back and say nothing. King Obama already is passing up the immigration law and letting them stay…without congresses approval…what on earth do you think he is going to do next? He is on a path to totally eliminate the power of us voters before the 2012 election. We should be calling our Senator and Congressmen and tellling them to continue debating with this administration and forget the 12 elite members that we chosen. Did you notice Kerry is in this group…REALLY
Report Post »zman61
Posted on August 22, 2011 at 9:13amI agree, it it very puzzling to me how there is no outrage that there is now a 12 person “super congress”, I think they called it that, to make these decisions for us. Where is that authorized in The Constitution? did the rest of congress just cede their power to represent their constituents to 12 of the most partisan representatives in congress? That won’t turn out well for us.
Report Post »Ampleforth
Posted on August 22, 2011 at 9:53amThe Super Committee is a junta. Everyone should be outraged over Congress yielding it’s authority to a political clique. Congress and many other politicians in Washington knew that this junta would give the lobbyists easier targets when it came to handing out favors up there.
This Super Committee is a shame.
This is what happens when a nation is completely devoid of leadership. Boehner is not effective. Reid is milquetoast. Obama is off in exile, testing the waters to figure out how best to cloak his socialist “make work” policies he’s about to propose.
The solution to the nation’s debt crisis is a committee? Really? Committees always work.
Jeremiah Wright said that this nation’s chickens were coming home to roost. I never realized how prescient that bag of feces actually was. What I didn’t figure is that the chickens would take the form of a weak-kneed president, a weepy house speaker, a monotonic majority leader, and a dozen roosters unaccountable to the voters.
Does anybody still believe we can reverse this crisis at the ballot box? Congress and the president usurped the power away from the people and put our military in the clutches of political hostage taking.
Report Post »conservativeagent
Posted on August 22, 2011 at 2:03pmNo way to reverse all that has been happening in DC. Other means are called for!
WOLVERINEs!
Report Post »SparkyVA
Posted on August 22, 2011 at 3:25pmThe 12 sounds like an idea taken from the EU where the Union is ruled over by people selected by the various governments, not by the citizens. I hope to heck that the council can deadlock until after the 2012 elections when we can get back to a constitutionally mandated government.
Report Post »scrapman
Posted on August 22, 2011 at 8:47amKill the tax system and install the VAT tax this way everyone pays.
Report Post »billybe123
Posted on August 22, 2011 at 8:51amAgree….
Report Post »satotbs
Posted on August 22, 2011 at 9:05amOnly if the vat tax is the one and only federal tax and is never more than 10% by constitutional ammendment.. NO other ferderal taxes period.
Report Post »zman61
Posted on August 22, 2011 at 9:08amdo you understand what a VAT is. a product will be taxed at every stage of development. It will cost more than twice what it does now, maybe 3 times. Besides they want to ADD the VAT on top of what we have. They will never give up what they have now. It is their power over us. What would be good would be a consumption tax, an end user tax. But as I said they will never let go of the income tax. it would take away the power they wield over the population. They would no longer have the Gestapo, I mean the IRS, to watch over and punish us when we get out of line!!!!
Report Post »Rickfromillinois
Posted on August 22, 2011 at 8:34amSocial Security is going broke so they cut the amount of “contributions” people make into the fund? How about cutting the Federal Income Tax that goes into the general fund instead? While they are at it, how about some meaningful cuts in spending? Just some wild and radical thoughts.
Report Post »zman61
Posted on August 22, 2011 at 9:00ambecause they are all brain dead politicians and all they care about is getting re-elected and power.
Report Post »portague
Posted on August 22, 2011 at 5:03pmall the money they collect basically goes to the general fund including SS money. That is why there is no SS money they spent it all. The money we pay now is not saved or anything it goes from your pocket straight to those collecting SS and else where.
Report Post »banjarmon
Posted on August 22, 2011 at 8:33amAny means that takes money out of my check for government use is a TAX!!!
Report Post »JQCitizen
Posted on August 22, 2011 at 8:11amIs there even a debate yet on the fact that this man is a CALCULATING LIAR and a SCHEMER? This article seems to take his claim to want people to keep some of their money seriously. Mr. Obama never met a dollar that he didn’t think BELONGED to the government. Any dollar the government LETS US KEEP is considered his magnificent benevolence!!!
Report Post »jzs
Posted on August 22, 2011 at 8:40amYou’re right, Eric Cantor is a liar. So is Newt.
Anyway, this is simple. This tax break helps the poor, and people like you and me. The foundation of the Republican philosophy is to help the rich, not the rest of us. Yes, the rich are getting richer, the rest of us are getting poorer. That’s a fact, not a platitude. That’s what the Republicans offer you, because the rich get them reelected, not you. Sorry. There’s an increase in your taxes thank to the Republicans.
Report Post »joe1234
Posted on August 22, 2011 at 8:59amJZS…yeah you democrats are ‘helping’ us SO much with that 9% unemployment rate…how’s socialism working for ya? thought you’d LOVE more taxes for your failed socialist security ponzi scheme…
maybe you should work harder and whine less if you want more money…envy and greed are such ugly emotions…how much of THEIR money do you think YOU are entitled to?? hmmmm??
Report Post »TheOracleOfTruth
Posted on August 22, 2011 at 9:02am@JZS – LOL, Communists like you make me chuckle! It is always the GOP or TEA that is in the wrong with you, the ideologue that you are! I wish people like you would move to Europe to live in socialism, isn’t it so wonderful over there? I mean, they are going bankrupt and will take the world’s financial system with it…even ours! So go ahead and boast all about socialism, it is a failure, and so are you – freeloader! Your time of freeloading is about to end, and I wonder what stupid people like you will do about it – revolt on the streets? Americans WILL defeat socialism here, no doubt about it, but will we survive the stuff you have put into our laws? That is the question?
Report Post »NOTAMUSHROOM
Posted on August 22, 2011 at 9:34am@JZS
Citizen is obviously talking about your messiah, the Islamomarxist in Chief, Osamabama.
The rest of your post is boring Progressive Marxist talking points and class warfare demonization without the first ounce of intelligent discourse or analysis. Therefor, it is rhetoric and platitudes served up on a social justice platter.
How about EVERYONE pay their fair share as in a FLAT TAX and we stop the socialist programs that have already bankrupted us! Get your lazy butt up off your mama’s couch and start a business!
Stop the class envy and class warfare already!
Oh, and let’s vote them ALL out of office as each one comes up for re-election. No one needs to spend their entire life in Washington DC.
Report Post »lapitup
Posted on August 22, 2011 at 9:40amI find this very intrusting. Think; it’s not that hard! Why on earth dose Obama want to give us this tax discount now of all times. Sense Obama has been in office he has done nothing, but want to increase taxes. So why now? We can’t even afford the paper our money is printed on right now so why the tax break which is really the bone leftovers from dinner (it’s a scam). I wonder could it have anything to do with the election coming up? This makes me sick and you know what people are going to buy it.
They say that we would have 1k to spend and help the economy grow jobs. The problem here is that Obama is talking about the world economy. Not the U.S. Economy. I wish there was a law that with that 1000.00 you could only buy things made in the USA, Or local food’s/supplies. I say none of it should go for anything made in China; or, You know what would be great Foreign Policy. Is if we forced everyone to buy things from china but all the money would triple to pay off Debt occurred by the USA. They say this will cost about 120 billion dollars. So if we were all forced to buy things from china it would pay off 360 Billion dollars in debt. If china said no. Then I would make a law for the former law.
We better start getting smart and paying attention to the politics being played here. Obama has it all over the news that the GOP wants to stop a tax break. Well the thing is if we get a tax break now, later taxes will have to grow all that and more. Is this really that hard t
Report Post »derekcranex
Posted on August 22, 2011 at 8:10amTed Kennedy, many years ago, argued that the social security tax was not a tax but a “contribution.” Therefore, Republicans are not seeking to raise taxes, only contributions.
Report Post »NOTAMUSHROOM
Posted on August 22, 2011 at 9:46amLower payroll taxes for EMPlOYEES means HIGHER INCOME taxes on the same people.
Get it?
Report Post »Hermeneuticals
Posted on August 22, 2011 at 8:10amWhat nobody is saying is that this replaced an $800 refundable tax credit.
Many low-moderate earners have been getting that money week-to-week this year instead of in a lump sum on their tax refund early next year. Not in 2012 – for many an expected refund is gone, already paid out at $15/week.
Then many with tight budgets will see their net reduced by $50+ / month starting in Jan. Chump change for some but for many it means stopping spending on something, deepening the recession.
Conservatives also need to stop throwing out this “50% don’t pay any Federal income taxes” number, because it will drop significantly in 2012. The elimination of the $800 dollar credit raises the threshold on who pays F.I.T. by $8000.
Report Post »christos
Posted on August 22, 2011 at 8:08am……Flat tax of 10% for everyone abolish the IRS have states collect it,the subject is not worthy of a picture with honey in the background enemy of +GOD+ —Monsanto shill,,,where‘s the Bee’s–we know.
Report Post »old white guy
Posted on August 22, 2011 at 8:21amthe tax system is complex. the more complex it becomes the more diffficult it is for the average person to see how they are being ripped off by the various levels of government. stop paying and spending and vote to remove everyone from office everytime there is an election. change the people who work for us evry cycle. that will help and maybe force those running for office to actually do something constructive about taxes.
Report Post »SamIamTwo
Posted on August 22, 2011 at 8:32amTry this again…seems theblaze has issues with posts.
I‘ll go with a consumption tax since I can’t afford to buy much.
(clicking again to post one up-add an edit function while you are at it blaze, tired of living in a cave)
Report Post »mwhaley
Posted on August 22, 2011 at 7:52amI’m a stupid uneducated mechanic, but I can see the solution to this problem. Entitlement programs are a failure. The socialist experiment has failed. Admit that it has failed and go on. Implement the fair tax system. Sure there are going to be a lot of freeloaders that are going to get mad, but life sucks.
Report Post »13th Imam
Posted on August 22, 2011 at 8:36amThe bloodsucker Tax Lawyers will be crushed. They will have to scale back their golden lives. The Tax Accountants will be devastated also. The Infernal Revenue Stealers, should be the first Dept. to be eliminated. The both DOE’s.
Report Post »liberalsarealiens
Posted on August 22, 2011 at 7:46amI’m with the Rebublicans here. It’s all smoke and mirrors from Obama. He just wants business to pay it all! Repeal the cut!
Report Post »Rightallalong
Posted on August 22, 2011 at 8:17amRINO republicans – CUT the DAMN SPENDING! Why is this so hard for people to understand.
Report Post »Cat
Posted on August 22, 2011 at 7:43amHere it comes folks.
First of all, FICA deductions on an employee’s income wouldn’t exist if the employer never hired anyone.
Start your own business and you’ll figure that out in a hurry.
What actually happens with this plan is more of your money is being taxed at the income rate (12 – 35% not 6.2%).
Over all the government takes in more of the worker’s money.
It is a revenue enhancer.
This does not solve the problem of the government spending too much!
Report Post »SamIamTwo
Posted on August 22, 2011 at 8:27amIn kind contributions from the employee and the employer…the labor cost is cranked into the companies end item or service they provide to the public.
AND I did not see anything, product or service being reduced as a result of the tax break…did you? Seriously, nothing worked to help anyone…and I don’t miss the 15 bucks a paycheck that went to SS to help to keep the net in place.
Report Post »Cat
Posted on August 22, 2011 at 9:02am@SAMIAMTWO
We shouldn’t be pulled off topic.
The topic is government spending, not how the government taxes us.
It’s the old slip, they do it EVERY time!
You are correct that all costs associated with doing business are passed to the consumer.
What this proposal does is shift the tax collected from working people from income from FICA, resulting in increased revenue.
It is a tax hike … period
Be careful about agreeing to the government taking ANY of your money.
At over 60 and working, there is a lot that could have been done a long time ago to assist in my retirement package, but uncertainty has fouled that all up.
Why does the government have to be involved in our retirement anyway?
A simple pamphlet published every year suggesting investments opportunities would have sufficed.
Would the government give us their moneymaking secrets when it’s easier to simply tax us?
No, the government thinks we’re stupid, so they tax us and threaten prison if we refuse to obey.
The government shouldn’t have been involved in collecting our money in the first place.
Report Post »After the dust settled, they slipped the SS funds into the general fund and pissed it all away.
I’ll be dammed if I’m going to be held responsible for an irresponsible bunch of thieves!
CUT SPENDING!
SamIamTwo
Posted on August 22, 2011 at 7:41amHell, I have no problem helping to making SS solvent. I don’t mind if we go back the old payroll tax rate. Hell that won’t break me…it’s a mere pittance that I was paying before the small tax break…I barely noticed it.
We’ve all become greedy and helped contribute to the downfall…thru politics. Go back to the old rate and begin to restore the system…It won‘t happen over night and it’s not going to kill ya to kick in what we’ve been kicking in pre-Bush years.
“Render unto Caesar the things which are Caesar’s, and unto God the things that are God’s”
You want the rug pulled out from under SS? It will only contribute to the push down and rise up. The majority of you pay no direct taxes but bitch about it and then want to kill SS. LOL
If you make 50K a year it’s about what, 3 bucks a day that you get from the payroll tax cut…Do your really need it or would you rather help to make SS whole again? pfft.
Our politicians don’t explain crap anymore…they just play politics with it and let it crash around them.
Report Post »Secret Squirrel
Posted on August 22, 2011 at 7:29am.
“The 12-month tax reduction will cost the government about $120 billion this year, and a similar amount next year if it’s renewed.”
It makes me crazy to hear, “Any tax cut will cost the government………”
Report Post »It costs nothing, because it’s not their money to start with, it’s my money.
blue_sky
Posted on August 22, 2011 at 7:41amSocialists confuse revenue with spending. They not only bad in economics, they do not know accounting. Actually it is all fraud and brainwashing on their parts. If your mind is clear, you will see tax increase under both DEM & REP in all our history since 1913. As soon as Federal Reserve bank was created to allow the government grow by itself through militarism (Pentagon), spying (HS), alcohol/drug wars (FBI), entitlements (Big Labor, special interest groups, bail-outs, affirmative-action, etc. So no matter what president you vote in, it would be the same (more or less.)
RON PAUL is the only hope.
Report Post »trolltrainer
Posted on August 22, 2011 at 7:48amYes, because RON PAUL (caps because HE is Godlike) will snap his magic libertarian fingers and make everything all better!!!!!!! No more Social Security so we will not need to worry about funding it so this is a non-issue.
I love RON PAUL…
Report Post »blue_sky
Posted on August 22, 2011 at 7:57amTrolltrainer, sarcasm is a good tool in any debate, agree.
Report Post »Ron Paul understand that checks to dependents should continue. His solution is
1) cut militarism (not defense), bring all troops home. Just this alone will ensure that billions of military salaries is spent in USA instead of abroad.
2) cut pet projects
3) allow overseas capital to come back to USA without being taxed.
4) allow young people to opt out from all government programs for only 10% tax. When old folks fade away, new free people will replace them without being dependent. Then in the future the income tax can be reduced to 0%.
trolltrainer
Posted on August 22, 2011 at 8:05amBlue_Sky,
It is not Ron Paul I have a problem with as much as his rabid followers…
You do understand that, on the almost impossible .00001 chance Paul would even be elected president, he would still have to battle through congress, albeit probably a Republican super-majority, and most of his ideals would not be implemented…ever…
But other than saying that, I do agree with what you post here as representing Paul’s plan. Just so you know, I will probably end up voting for Paul in the primary…Knowing I am throwing that vote away…
Report Post »blue_sky
Posted on August 22, 2011 at 8:20amTrolltrainer, if majority of people become “Paul-bots” :), then people will send to congress only people who actually defend the constitution. Meanwhile what RP can do without Congress, just by himself
Report Post »1) bring troops home, secure our border.
2) cancel many executive orders of former presidents
3) re-allocate money within State department within budget constraints
4) order FBI to audit Federal Reserve
5) order FBI to stop war on drugs and instead assist with the border control
6) Order Homeland security to stop TSA and local spying without a warrant
7) and on… and on…
csinnm
Posted on August 22, 2011 at 7:29amwhat part of “temporary tax holiday” did the AP not get? it was a stupid idea last December and I knew then this would be the reaction when the “holiday” ended. I put that 2% in my 401(k). to do otherwise would have just result in more income tax being imposed on it.
Report Post »winwithpat
Posted on August 22, 2011 at 7:28amI never understood why they did this. It makes no sence. SS is running out of money so lets cut it even more? A flat tax is the only thing that will be fair across the board and it will bring more money into the coffers. When almost 50% of people pay no tax this would level the playing field. I don’t believe this Super Committee will work out anything. I am so tired of all the nonsence coming out of Washington. The only thing that will pull our fat out of the fire is congress to stop being Party men and become People men. All any of them care about is getting re-elected. Well maybe a small few are for us. The rest are need to be fired. The Dems in the Senate need to get Harry Reid to step down and put someone more People oriented in his place. And that will happen?! Never!
Report Post »warriorspirit
Posted on August 22, 2011 at 7:38amFlat tax is a bad idea IMO. It has most of the same problems we have today. I am for the Fair Tax System. We need to stop taxing income all together and tax consumption instead.
Report Post »SamIamTwo
Posted on August 22, 2011 at 7:43amI’ll go with a consumption tax…since I can’t afford to buy anything.
Report Post »loriann12
Posted on August 22, 2011 at 7:28amI got a $9 a week increase with Obama’s payroll tax cut, and I owed more taxes. I don’t think anyone who pays no taxes should be able to vote on tax increases. Of course they’re going to say raise the taxes, it won’t effect them.
Report Post »Secessionista
Posted on August 22, 2011 at 7:24amBetter pivot to this before we pivot back to jobs, lol!
Report Post »trolltrainer
Posted on August 22, 2011 at 7:34amSo are you saying Obama should give up on the payroll tax BREAK extension, or should GOP lawmakers give up on bringing back the 6.2% payroll tax for employees (employees did not get any such break and are still paying their full 6.2% per employee) so that they can make Social Security solvent again (see next article)?
Just trying to clarify your position here.
Report Post »emertz8413
Posted on August 22, 2011 at 7:19amJust another way to “stir” the pot and make us angry. This is what happens with big government.
Report Post »Rob
Posted on August 22, 2011 at 7:13amKeep your hands OUT of my wallet you basturds!
Report Post »blue_sky
Posted on August 22, 2011 at 7:24amBob, Ron Paul is the only safe bet to keep your wallet for yourself. People are tired to work 4-5 months out of the whole year for free (the government confiscate it as income taxes.) If you add all taxes and inflation, we work 7-8 months out of the year for the government. That is more than during feudalism.
Report Post »It is time to go back to free-market capitalism and keep 100% what you earn. Small government can collect small taxes at the ports on imports.
southernORcobra
Posted on August 22, 2011 at 8:24amRon paul is a crazy loon he is going to lose so you are wasting your time preaching for him.
Report Post »blue_sky
Posted on August 22, 2011 at 9:12amSouthernORcobra, preaching for Individual liberty, peace, and sound money is not loony.
Bush=Obama borrowing from communist China to pay for our endless unwinnable wars, knowing we have no ability to repay China without counterfeiting the dollar (printing more paper money) – that is loony indeed.
Report Post »blue_sky
Posted on August 22, 2011 at 7:11amDr. RON PAUL has been right all along. They tax us all the time through inflation.
Now GOP compromises on other direct taxes.
Here is what Ron Paul predicted in July about this.
Report Post »http://www.youtube.com/watch?v=UUNIeOB0whI
Cape_Lookout_RW_Extremist
Posted on August 22, 2011 at 9:59amBlue Sky…I too like some of the things Ron Paul says on the economic front but for him to be appathetic towards Iran getting nukes makes him sound like a loon. Russia is moving in to help set up more nukes with them. These are critical times…Paul is a joke.
Report Post »http://www.breitbart.com/article.php?id=CNG.278f9d820a1f216c793eed28ab2562c0.f1&show_article=1