Government

Obama Announces Tax Cut ‘Compromise’

In a preemptive move amidst a tax cut deadlock, the Obama White House is proposing a one-year “payroll tax holiday” as part of a larger compromise with members of Congress to avoid any increase in taxes when the Bush administration tax cuts expire at the close of 2010. The Wall Street Journal reports:

Under the White House plan, the Social Security tax paid by workers would drop temporarily by 2 percentage points, to 4.2% from 6.2%, a person familiar with the proposal said. For a worker earning $40,000, the tax savings would be $800.

The proposal has not won the approval of congressional Democrats or Republicans. Its emergence in the broader tax negotiations is a sign that the White House is trying to break the logjam on those talks before the end of the year, when tax cuts signed into law by former President George W. Bush are due to expire.

White House officials proposed the cut as a way to stimulate the economy, said the person familiar with the talks. The proposal would take the place of an earlier White House push to extend Mr. Obama’s signature Making Work Pay tax cut, which reduced income taxes for middle-income individuals by $400 a year.

Republicans had adamantly opposed extending Making Work Pay, and House Democrats were cool to it, as well. But Mr. Obama and Democrats are likely to accept a Republican demand that the Bush-era tax cuts be extended even for wealthy taxpayers, and the White House is looking for more in return for agreeing to extend the cuts for higher earners.

Update: In exchange for a 13-month extension of jobless benefits for unemployed workers who have exhausted their 99 weeks of available assistance, the Obama administration has agreed to a 2 percent employee payroll tax cut and extensions of several tax credits that were included in the stimulus bill.

In addition, the deal also revives the estate tax in 2011, but would exempt any inheritance under $5 million for individuals and $10 million for couples.  The Bush-era tax cuts will be extended for at least two years for all income levels — a Republican proposal vehemently opposed by many progressive liberals on Capitol Hill.  In anticipation of significant opposition from his own party, Obama plans to send Vice President Joe Biden to meet with Senate Democrats Tuesday, the Washington Post reports.

Developing…

Comments (92)

1 2
  • smamere
    Posted on December 6, 2010 at 8:17pm

    @R U Kidding Me. There will be no social security unless the spending stops. I don’t expect to receive it and I have been paying into it for more than 40 years! That’s just the way it is. THERE IS NO MORE FEDERAL MONEY! GOT IT? GONE, ZERO, ZIP, NADA. Nothing in the piggy bank. When will the Left get it? We are using a VISA to pay the Mastercard bill. It is a monumental ponzi scheme.
    Get ready for tough times. We’ve been there before. We will get through it.

    Report Post » smamere  
  • MidAmerican
    Posted on December 6, 2010 at 8:07pm

    @ Don’t Tea Bag Me Bro………. Are you an idiot by choice or by sheer bad luck?

    Report Post »  
  • papatom48
    Posted on December 6, 2010 at 7:46pm

    Oh, great, another bonehead idea from the Bamster. And just who is going to make up the social security money for the people on the program???? It’s not bad enough they have been stealing all the excess from the system since 1965, now they just rape it for another few billion. The reason social security is in the toilet is the politicians stole over 4trillion dollars from the system. Now this idiot wants to take even more. What a genius.

    Report Post »  
  • ...............R..U..Kidding...Me
    Posted on December 6, 2010 at 7:40pm

    Buy cutting your social security tax, people are getting screwed once again and don’t realize it. How many people are thinking…. Oh good, I pay $800.00 less this year. But think about it.. that’s 800.00 less going into your social security account drawing compounded interest over n years…well worth more than that $800.00s. In other words, the government will be paying you less Social security.

    Report Post »  
  • rjb1958
    Posted on December 6, 2010 at 7:31pm

    What I don’t understand is why are the unemployment benefits so important. In January 2010 when unemployment was 9.7% that number represented 14.8 million Americans out of work. What is the big deal about 2 million extended unemployment benefits when our unemployment went up to 9.8% in November. What about the other 12-13 million unemployed? I‘ve been on unemployment before and you can’t go shopping or do anything that stimulates the economy. You barely can keep your lights on and eat. Something is fishy with this unemployment benefit extension and I’m guessing the Unions have something to do with it.

    Report Post »  
  • mzmaj7
    Posted on December 6, 2010 at 7:29pm

    Why are they so ignorant. This is the same tax break that worked so well in the stimulus.

    At least this time, it’s based on a percentage. So some progress…

    Report Post »  
  • bo0990
    Posted on December 6, 2010 at 7:28pm

    I watched ObamaMan. All I saw was B— S—- flowing out of his mouth. It was a pre-written speech from some boob. Any tax cuts will be made up by the increased cost of food.

    Report Post » bo0990  
  • TOMMY FREEDOM
    Posted on December 6, 2010 at 7:20pm

    Ugly speech, ugly man, hugo, opps, i mean borocco needs an attitude

    adjustment, on the other hand he may act this way for the leftists.

    Many say he will rule w/o congress.

    Report Post »  
  • justice
    Posted on December 6, 2010 at 7:11pm

    Just still remember 2012 People, this is a pacifier for his 2011 campaigne. We can never forget like 9/11.Keep your eyes and ears open-wide open.

    Report Post »  
  • dont ****** me bro
    Posted on December 6, 2010 at 7:09pm

    Snowleopard…and you think boehner, palin, koch brothers are a better choice, huh?

    Report Post »  
    • Rogue
      Posted on December 6, 2010 at 8:19pm

      I can’t speak for Snow, but, um… absolutely. Since you included the Koch bros, I am more than happy to have them funding conservative activities – we need all the help we can get to counter Soros and the like.

      Report Post » Rogue  
  • ayemossum
    Posted on December 6, 2010 at 7:03pm

    Spent several minutes swearing at my radio while he was talking. Trying really hard to remain respectful of the man who does nothing to earn it and shows none in return….

    Report Post »  
  • nordspan
    Posted on December 6, 2010 at 7:03pm

    Does this mean that the previsously reported “compromise” of keeping the tax cuts would come only if Pres O would be allowed to add one year to unemployement?

    Report Post »  
  • RingADingDing
    Posted on December 6, 2010 at 6:57pm

    I’m happy he pissed off the democrats. Maybe they won’t vote for him in the next election.
    http://www.filthyceleb.blogspot.com/

    Report Post » RingADingDing  
  • heavyduty
    Posted on December 6, 2010 at 6:46pm

    Yeah, and there are parts of it he doesn’t like. What a surprise!!! Now some of the Dimos are mad at him. Boohoo.

    Report Post »  
  • MIlitary Nurse
    Posted on December 6, 2010 at 6:41pm

    I am NO economist, but 12 months is NOT long enough to stimulate ANYTHING, Let alone our crap economy! Minimum 3-5 years is needed to truely fix our issues…along with a few other things that need to happen to fix it. 12 whole months? GeeWhiz Wallie, do you think it will work? Idiots

    Report Post » MIlitary Nurse  
    • J.C. McGlynn
      Posted on December 6, 2010 at 6:56pm

      Your correct about the time frame. My dad got a job, during the depression, when he turned 16. Five years later he was in the ARMY at 21 during WWII.

      Report Post » J.C. McGlynn  
  • Sharkhaywood
    Posted on December 6, 2010 at 6:38pm

    So Social Security is heading towards insolvency due to a lack of funds and Obama wants to reduce what is paid into it?

    Report Post » Sharkhaywood  
    • indy1
      Posted on December 6, 2010 at 7:07pm

      Exactly. Sheppo let that one go because he wants Hussein to deliver on Don‘t Ask Don’t Tell

      Report Post »  
  • wyldibrouse
    Posted on December 6, 2010 at 6:38pm

    Turns my stomach. These people are monsters.

    Report Post »  
  • NE12012
    Posted on December 6, 2010 at 6:38pm

    Since I’ll never see Social Security,I’d like mine @ 0% please.

    Report Post » NE12012  
  • NJartificer
    Posted on December 6, 2010 at 6:28pm

    The dems have played us again… they deserve no compromise for doing what is best for the people

    Report Post »  
  • ilovetheusa1
    Posted on December 6, 2010 at 6:24pm

    spineless f’en republicans 56 more weeks of unemployemtn. our rates went from .7% to 4% because of this crap. one more tax hike for the employers

    Report Post »  
  • Its Gonna Getcha
    Posted on December 6, 2010 at 6:24pm

    What is a shame is these younger generations have no experience with these kinds of economic challenges, and how they are overcome. It’s not by being the type of person who buys a useless contraption in a TV commercial because they just needed to believe.

    Report Post » Its Gonna Getcha  
  • Ortho
    Posted on December 6, 2010 at 6:19pm

    It is all a game. The Democrats “pretending” to be upset with Obama and running their mouth on the Sunday shows, now this. Watch the other hand, this is not what it seems. Remember December 2009 present to us all ?

    Report Post » Ortho  
  • BetterDays
    Posted on December 6, 2010 at 6:19pm

    I’m glad they passed a two year extension, business would have preferred a permanent or five year extension, but take what we can get I suppose. The extension on unemployment and this reduction in SSDI tax’s will balloon our federal deficit, and quickly so, hopefully the NEW congress can act quickly on reducing the size and cost of Government. They can start by firing Janet “GOD I’m ugly” Napalitono, and her TSA/HS goons!
    On a related note: the far left is PISSED right now, at Obama, and at conservatives, so watch the other hand with Eagles eyes!!!! I would not put it past them to start the riots here, or worse.

    Report Post »  
    • UlyssesP
      Posted on December 6, 2010 at 6:27pm

      The proposal has not won the approval of congressional Democrats or Republicans.

      Report Post » UlyssesP  
    • BetterDays
      Posted on December 6, 2010 at 6:35pm

      yup, senator Bernie Saunders told the ED show he’d filibuster it.

      Report Post »  
    • snowleopard3200 {mix art}
      Posted on December 6, 2010 at 7:05pm

      @Betterdays

      I wish they would try Napoletano if there are legitimate and provable criminal offenses. We had to stand her for many years here in AZ (if you are from the state then you know first hand), and for the fact she fled to the administration so quickly, meant she just is a opportunist and a Judas goat.

      Let me be more clear of my opinion of her – she is a mangy, ragged, bent tailed, lopped eared, flea ridden, flea bitten, sunburned, and deranged coyote with no teeth and perpetual bad breath.

      Report Post » Snowleopard {gallery of cat folks}  
    • walkwithme1966
      Posted on December 7, 2010 at 3:50am

      Oh yeah – you better watch us – those riots will be starting soon – any day now riot in all the streets – that is just so much crap. When has there ever been widespread rioting in the streets in American except back in the 60′s. Alex Jones have predicted it for years and it hasn’t happened. Glenn is going to be wrong on this one also. http://maboulette.wordpress.com

      Report Post » walkwithme1966  
  • J.C. McGlynn
    Posted on December 6, 2010 at 6:16pm

    Blah, Blah, Blah, spend more money and promise to lower taxes. Please, for once, tell the truth.

    Report Post » J.C. McGlynn  
    • snowleopard3200 {mix art}
      Posted on December 6, 2010 at 7:01pm

      Yes it would be a short speech like this…

      “My fellow Americans, today I am now making myself dictator for life, will take over everything of the country, and will tax the daylights out of you to the point you will howl in pain; then I will crush you even more. Thank you and have a miserable night, for the nightmare is beginning and the HSA-KGB is now on the way to your door.”

      Report Post » Snowleopard {gallery of cat folks}  
    • MrObvious
      Posted on December 6, 2010 at 10:36pm

      If we could read Obama’s mind: “My boss, Gorge Soros, wanted me to shut down the oil wells, so I did. After all, he is a genius who knows exactly what the people of the world need. They need one world government. To get there we need to even out the economies of the world. We haven’t had any luck getting theirs to go up; so, ours must come down. Gorge wants the US to bail out failing countries in Europe and Africa. Helping out Kenya was my idea. I wanted to thank my cousin for getting all his friends to vote for me. I am promising to lower taxes; because, I want my approval ratings to go up; but, I can’t really lower them or all our plans to manipulate financial markets, take over health care, take over education, and control dissent within the media could loose funding. We can’t borrow much more; as, China is about to cut us off. The only way to get more money is to cut something; or, raise taxes. We can’t find any social programs we want to cut; and, we get yelled at when we try to cut military spending; so, we are trying to find a way to raise taxes while calling it a cut. One idea we already tried, and is helping somewhat, was to get the Fed to Monetize some of our debt. This will have the net equivalent effect of a 20% tax increase; and, we actually seem to be getting away with it; as, the economic downturn has been masking most of the inflation, so far. We know it will catch up eventually; but, with any luck, Republicans will be in charge by then and we can blame it on them. It’s worked before. Now that that WikiLeaks guy has embarrassed Hillary, I’ve got the next primary locked up; but, I still need something big to pin on the Republican senate to get the American people off my back. We’re have hope though. The long term success of all our glorious changes depends on framing the Republicans for something big before 2012. Maybe this tax thing, if I play it smoothly. Maybe SEIU, DOJ, the Panthers, AFLCIO and ACORN can work together to fix the elections in a more coordinated way, we really need to do a better job in that area.”

      Report Post »  
  • UlyssesP
    Posted on December 6, 2010 at 6:15pm

    Making Work Pay was a joke. My return shows they “gave” me the $400 then a few lines later took it right back, plus an additional $17. And I am under the “official” poverty level for an individual. This is all crap.
    I DO NOT trust Obama for anything.

    Report Post » UlyssesP  
    • snowleopard3200 {mix art}
      Posted on December 6, 2010 at 6:26pm

      As most blazers will recognize it for what it is…smoke and mirrors.

      Watch for Mr Obama to use this offer to make the claim of ‘I am fair with lowering taxes’ after he vetos any such move proposed by the Right. He can then say he tried to negotiate with them, while still appealing to his extremist base on the matter of taxes.

      And as you stated Ulyssesp, this little tax cut will be taxed in other ways.

      Snowleopard {gallery of cat folks}  
    • Oh, God!
      Posted on December 6, 2010 at 6:34pm

      I am with you SNOWLEOPARD3200. Completely agree.

      “The difference between God and Obama is that God does not think he is Obama”

      Report Post » Oh, God!  
    • heavyduty
      Posted on December 6, 2010 at 6:49pm

      The Democrats are mad at him for breaking his promise of not raising taxes on the rich. How many other promises has he made that he has broken to the AMERICAN PEOPLE. not just the Dimos.

      Report Post »  
    • kryptonite
      Posted on December 6, 2010 at 6:53pm

      Obama was fuming. He hissed and clipped his words, and I lost count of how many times he said, “I am unwilling.” Hopefully, we will be spared his presence while he recovers…

      Report Post »  
    • snowleopard3200 {mix art}
      Posted on December 6, 2010 at 6:59pm

      @Oh God!

      The difference between God and ones like Mr Obama, Pelosi, and Soros is simple:

      THEY think themselves Gods in their own minds and deeds.
      God is God, and will show them otherwise.

      Report Post » Snowleopard {gallery of cat folks}  
    • John 1776
      Posted on December 6, 2010 at 7:07pm

      So, the one tax he cut was for SSI, which is about to go belly up. That way, when it does, he can proclaim it did so because of the cut the Republicans “forced” him into making so that their rich friends could get paid off. How stupid does he think we are? Oh, that’s right, according to MoveOn, there is no problem with SSI or medicare/caid.

      Report Post » John 1776  
    • tranquilrider
      Posted on December 6, 2010 at 7:12pm

      hey snowleopard3200 {mix art}
      You do realize that everything you post on this site is a Beck talking point, don’t you? Im not sure that I’ve heard an original thought from you. How many times does Becks talking points have to get debunked for you to do your own research?

      Report Post » tranquilrider  
    • Sinista Mace
      Posted on December 6, 2010 at 7:12pm

      I’ll explain what making work pay really means in a literal sense.

      It means pay me what I earn.

      The government is not paying us what we earn and haven’t done so for any of us since 1913 and the Federal Reserve Act.

      We’re supposed to be paid in gold and silver coin. We‘re being paid in paper IOUS that aren’t worth the ink and the paper it’s printed on.

      What making work pay for Obama and all the presidents preceedinghim, is taking your earnings before you touch it, and paying you in fake paper and presenting it to you as payment.

      We don’t need the Federal Reserve to print OUR money, lend it to us at interest, tax us before it touches our hand, and pay us in paper.

      We need to return to a gold or silver standard.

      Report Post » V-MAN MACE  
    • pajamash
      Posted on December 6, 2010 at 7:48pm

      What a bunch of crap!! Check it out:

      http://www.mytaxburden.org/

      A person making $40,000 will be paying in an additional $4,000 plus and Obama and the Democrates will give us a paultry 800 back?! That is not a compromise! That is robbery.

      Not to mention you are hastening the demise of Social Security by reducing its income. WHAT IS THIS MAN THINKING!!!!!??????

      Report Post »  
    • Rogue
      Posted on December 6, 2010 at 8:13pm

      @ Oh God – you reminded me of another joke. What’s the difference between a porcupine and an Obama motorcade? A porcupine has pr!cks on the outside.

      Report Post » Rogue  
    • collcw
      Posted on December 6, 2010 at 8:58pm

      Why is no one commenting on the fact that they have just reduced the FICA by 2% which goes to Social Security? If SS is broke, and now there will be 2% less income for SS, where does that leave the elderly and handicapped? Once again, the elderly and handicapped get left to die. Does anyone believe that God is happy with how the elderly of this country are being treated? He WILL NOT strive with man forever!

      Report Post »  
    • collcw
      Posted on December 6, 2010 at 9:03pm

      Why is no one on the news commenting about how this 2% reduction in FICA will affect the elderly and disabled? If Social Security is broke, how is a 2% reduction going to help? Once again, the elderly and handicapped are left to die. Does anyone really believe that God is happy with the way this country is treating its elders and handicapped? He WILL NOT strive with man forever!

      Report Post »  
    • Mark
      Posted on December 6, 2010 at 9:04pm

      Make Work Pay replaced by a temporary 2% reduction in Soc Sec payroll taxes. Unless cuts are made permanent no matter who proposes them then they are nothing more than politics as usual, it shows that you have no belief in that proposal either.

      Report Post » 1TrueOne55  
    • chuchu12
      Posted on December 6, 2010 at 10:05pm

      watch the other hand.

      Report Post »  
    • chexfive
      Posted on December 7, 2010 at 1:29am

      REDD, you got that right, this is a trade for the republico’s vote for the DREAM ACT, they are voting Wed. You think they will bring this up without enough votes? I don’t know, you can never tell what these sellouts will do to us at anytime.

      Anyway, I would advise everyone to let loose the phone cannons Wed morning if possible, if not, tomorrow night. Go to Numbers USA and use their Free Faxes and Emails that are super quick and easy. BUT MOST IMPORTANTLY – CALL YOUR POLITICO’s, we cannot let this happen or millions more will be coming here and driving the cost of health care and other things up as well as getting the gov handouts. Use Numbers USA, and ALIPAC.us, support them for supporting you and America.

      Thanks Guys!

      Report Post » chexfive  
    • shorthanded12
      Posted on December 7, 2010 at 7:10am

      Ever notice why something that is good for the country is always played with by both parties, they use it totaly for political gain. Theres a sign (billboard) on Interstate I-85 (north bound) with POTUS mug shot on it and it says “GOVERNMENT DEPENDENCY, THANKS FOR THE LEGACY MR PRESIDENT” If i remember correctly its about 15, 20 miles from the GA, SC state line.

      Report Post »  
    • VTSickFreak
      Posted on December 7, 2010 at 8:17am

      I haven’t heard what the FICA ceiling will be in 2011. This year it $106800, meaning you pay 6.2% on your earned income up to that level for a maximum tax of $6621.60. At 4.2% that max payment would drop to $4485.60 for a max savings of $2136. If they raise the ceiling significantly or eliminate it all together they could easily make up that loss of FICA revenue on the backs of everyone making over $106K. Lower income people would get their tax break and the RICH would take it on the chin.

      Report Post » VTSickFreak  
    • JKN
      Posted on December 7, 2010 at 9:37am

      You mean a Tax Cut CAVE! At least the Republicans can show a pair…

      Report Post » Jackers  
1 2

Sign In To Post Comments! Sign In

Sign Up For Our Newsletter!

Glenn Beck Radio

Listen to Glenn Beck 24/7 Listen Now
Restoring Love