Obama Administration Not Sticking Up For Payroll Tax Cut By Sam Stein | HuffPost | 11/26/2012 8:23 pm EST Excerpts: WASHINGTON For the past two years, U.S. workers have enjoyed a 2 percentage-point increase in take-home pay thanks to a payroll tax reduction trumpeted by lawmakers as an effective lift for a sagging economy. Come Dec. 31, that cut will expire - and policymakers don't seem too upset about it. In a victory for the Obama administration during the lame duck session of 2010, Congress reduced the payroll tax rate from 6.2 percent to 4.2 percent, giving the average U.S. household an additional $1,000 per year. Democrats demanded an additional extension at the end of 2011, and while Republicans initially balked, the political repercussions of hiking taxes on struggling families proved too much to bear. Now facing another deadline, the White House has gone almost completely quiet on one of its favorite stimulus policies. In a report released Monday morning, the administration warned that middle-class families will pay thousands more in taxes next year unless Republicans relented on income tax breaks for the rich. But the report didn't mention the soon-to-expire payroll tax cut. Michigan Rep. Sander Levin, the top Democrat on the House tax-writing committee, said this month that the fate of the payroll tax cut should be decided after the Labor Department releases new employment numbers at the beginning of December. Some lawmakers are supportive of continuing the policy. Sen. Chuck Schumer (D-N.Y.), said at a recent Christian Science Monitor breakfast that a payroll tax cut extension or "some kind of stimulus" is "certainly on the table ... as part of the grand bargain," arguing that this is needed in an economy is "still moving slowly." Schumer's aide, Brian Fallon, confirmed that the senator still believed extending the payroll tax cut should be on the table. But Senate Majority Leader Harry Reid (D-Nev.) has not commented on whether he thinks the cut should be extended. A spokesman for his Republican counterpart, Senate Minority Leader Mitch McConnell (R-Ky.), said Monday that the senator wouldn't wade into the debate. A spokesman for House Speaker John Boehner (R-Ohio) did not respond to a request for comment. Other progressive economists and lawmakers have argued that if the payroll tax cut is not extended, something else should take its place. One top Senate Democratic aide called that "a pretty consensus view on our side." But there are clearly detractors. Many lawmakers and outside stakeholders have expressed concern that diverting tax money from Social Security - which the payroll tax helps fund - would weaken the program, which provides an average monthly benefit of $1,237 to some 40 million seniors. The Social Security Administration's actuaries say the trust fund will run out of money in 2033, at which point incoming tax revenue could support just 75 percent of benefits. "We're pleased the White House doesnt mention the payroll tax holiday since extending it would undermine Social Securitys separate dedicated funding source," AARP executive Joyce Rogers said in an email. "We also remain committed to keeping Social Security and Medicare benefit cuts out of any 'fiscal cliff' negotiations." Sen. Bernie Sanders (I-Vt.), a self-described socialist who has been a vocal advocate of social insurance programs, said Monday that he is "strongly opposed" to keeping the tax holiday, since doing so could damage Social Security's solvency. "The middle class deserves tax relief, but not at the expense of Social Security," Sanders said. "The president and members of his administration have been very clear that the payroll tax reduction was temporary and would not be extended. I expect them to keep that commitment." http://www.huffingtonpost.com/2012/11/26/payroll-tax-cut-obama-administration_n_2194356.html ...... This is really a difficult problem to solve. I also want the payroll tax reduction to stay, but not at the expense of diverting the Social Security funds, but the money can clearly come from other sources...like military bloat which are due to finally get austeritized. There is never a need to take SS money for other things which is a regular Congressional strategy. There are other wasteful areas to be overhauled before touching any Social Security changes which are not needed. This was never an entitlement for the citizens...it was paid for by the citizens and belongs to them.
How about only allowing seniors to collect SS? This would cut down on the entitlement part of SS. Perhaps tie the weekly payment of SS to the amount of full time years the senior worked in their life. Oh, and cut military spending in half.
AHAHHAHAHAA Its so cute when people believe leftys.... All they wanna do is raise taxes on everyone.... PS The military is the only thing the government is supposed to spend money on....
Thus it will be the administration and Democrats' fault if taxes go up on the middle class. Of course, raising taxes on the middle class is exactly what Obama & Co. want. They know their class warfare "eat the rich" tax distraction, which will only raise $82B/yr., will never cover their profligacy, which is adding $1T+ to the national debt every year. Who is stupid enough to believe that it actually will? Step up and be heard, progs...
