Boehner double-crosses McConnell, no deal on Payroll Tax Cut

[BigJon3475]

Accordingly, NPRC advises policymakers that we believe there is insufficient lead time to accommodate the proposal embodied in H.R. 3630. In our opinion enactment of HR 3630 as written could create substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees.

The difficulty is in establishing a new Social Security Taxable Wage limit of $18,350 for the two- month extension period. More than ten percent of the workforce1 is likely to meet that limit, and would be subject to the higher 6.2% tax rate for earnings over that amount. However, many payroll systems are not likely to be able to make such a substantial programming change before January or even February. The systems affected tend to be highly complex, normally requiring at least ninety days for a change of this magnitude for software testing alone; not to mention analysis, design, coding and implementation.

As we commented to the Treasury Department concerning the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-312), which was enacted on December 17, 2010 and effective on January 1, 2011, payroll service providers are probably the best equipped of those affected to handle last-minute tax law changes. However, programming to support the new taxable wage limit might not be available to employers that do not use a payroll service provider until well after the effective date. Affected employees could be confused by payroll adjustments seeking to collect additional taxes late in the year for wages paid in January or February.

http://abcnews.go.com/images/Politic...0HR%203630.pdf

[BigJon3475]

Originally Posted by TimC2462

You may call it irony and that's fine, but that is nothing compared to the tremendous hypocrisy of the GOP who have always believed in tax cuts to reduce the size of the government to get the economy going again.

The Democrats wanted a full year of payroll tax cut but that was shot down so the Senate had to compromise to reach a two month extension. Now Boehner wants to shoot that down because he says he wants a full year of payroll tax extension.

No, this was the "compromise" from democrats because of the pipeline deal being added to the bill.

This is Harry Reid's mess.

[Darkatt]

Originally Posted by Winter_Sucks

That's why they are balking at extending the payroll tax cut. They don't want to see anything help the economy because they think that will help Obama. It's all politics with the GOP now, they don't give a damn about the economy.

The above is probably one of the most inane things I have read in a long time.

1. The house is right, 2 months is stupid. It simply means in 30 more days, we will be right back where we are now, bickering and not solving anything.

2. 2% is going to break the economy? Really? Where are your math skills? 2% of of a $2000.00 paycheck = $40.00

I don't even get $2000 paychecks, in fact the difference for me is going to be about $18.00.

If we lose it, then we lose it, big freaking deal. We need to get that pipeline building, we need to get jobs rolling, and you are worried about what? $20 bucks worth of paycheck that congress is going to be bickering about in 30 days, yet again?

Fix it now, or don't fix it at all, there are more important things to be dealing and the longer this is an issue, the more time congress will spend on it instead of something more important.

2%.. are you serious. Drive less and save a tank of gas, there's your 2%

For others, I can work an extra hour or 2, and make up that whole 2%. That's 2 pennies on the dollar, 2 dollars out of a hundred. Big freaking deal!

[marcopolo]

Originally Posted by Winter_Sucks

Are you saying raise rates more on the poor and middle class than the highest brackets?

Winter, the "Bush Tax Cuts" cut rates more on the poor and middle class than the rich--so the expiration of the Bush Tax Cuts would do exactly what I said, yes. Are you still sure you want them to expire?