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The Bush tax cuts are the "new normal." People have become used to them and have come to count on them. Taking them away would hurt the average person a lot more than taking away the short-term payroll tax cuts.
Not to mention that the payroll tax cuts simply take money away from Social Security and, being so temporary, have little economic benefit.
The Bush tax cuts are the "new normal." People have become used to them and have come to count on them. Taking them away would hurt the average person a lot more than taking away the short-term payroll tax cuts.
Not to mention that the payroll tax cuts simply take money away from Social Security and, being so temporary, have little economic benefit.
They are only temporary if we don't make them permanent. I don't know about you, but it does not take me long to get used to having $1,000 in my pocket. I got used to that really quickly and the very first pay check without the deduction people will notice.
There should be a card attached to everyone's paycheck...merry christmas from the Republican Party. Sorry about taking the money, but you did not need it anyway.
Since so much money has not gone into the Social Security Trust Fund doesn't it mean that the fund will go bust alot sooner than predicted?
Will the money not being contributed by workers affect the calculations of wages contributed for future benefits? There's almost one year of no
contributions.
They are only temporary if we don't make them permanent.
Absolutely.
Quote:
Originally Posted by hotair2
I don't know about you, but it does not take me long to get used to having $1,000 in my pocket. I got used to that really quickly and the very first pay check without the deduction people will notice.
If they go away after one more year or two more years, then when people don't have that extra $1,000, everything will just go back to the way it was before. In fact, it could be worse. But, if we agree that they should be permanent, then this is moot.
If they go away after one more year or two more years, then when people don't have that extra $1,000, it'll just go back to the way it was before. In fact, it could be worse. But, if we agree that they should be permanent, then this is moot.
Well then we agree. They should be permanent, and I think we can also agree the best way to pay for them is eliminate the SS cap. Good fiscal policy.
Typically, reducing tax rates stimulates the economy in such a way that growth in business results. This is because investors have more money to invest. Investing in business is good. When businesses expand, jobs are created, and thus there are more taxpayers paying into the system. This is why cutting tax rates almost always results in more revenue to the Federal governmemt.
When Obama, under duress, agreed to extend the Bush era tax rates, instead of letting them expire, all he really did was to agree not to raise taxes. Obama did not cut taxes.
Cutting the payroll tax, however, is different. The Payroll tax is supposed to pay for Social Security. If we are reducing the amount taken in to pay for an already bankrupt system, and continue to pay out the same, the difference has to come from somewhere.
Further, those employees who have had their payroll taxes cut are going to see (some day) a reduction in their benefits, because the benefit amount depends on what you have paid in. I'm sure many people do not realize this.
Our real problem is spending. Spending has increased dramatically under Obama, and they continue to spend.
As many have said, "we do not have a revenue problem; we have a spending problem."
Typically, reducing tax rates stimulates the economy in such a way that growth in business results. This is because investors have more money to invest. Investing in business is good. When businesses expand, jobs are created, and thus there are more taxpayers paying into the system. This is why cutting tax rates almost always results in more revenue to the Federal governmemt.
Exactly, up to a certain point.
Quote:
Originally Posted by nononsenseguy
Further, those employees who have had their payroll taxes cut are going to see (some day) a reduction in their benefits, because the benefit amount depends on what you have paid in. I'm sure many people do not realize this.
But this is moot for most of us who are younger than, say, 50-55 now. Most of us will never see those benefits anyway.
Quote:
Originally Posted by nononsenseguy
Our real problem is spending. Spending has increased dramatically under Obama, and they continue to spend.
As many have said, "we do not have a revenue problem; we have a spending problem."
Agreed.
Last edited by afoigrokerkok; 12-04-2011 at 01:34 PM..
What a novel concept, which seems to have gone out the door at the beginning of Reagan's presidency and hasn't been done since. Of course now that we have a Democrat in office...lets change everything. When we started the war in Iraq and Afghanistan, where was Bush saying that we need to cut spending in other places to pay for the war or raise taxes to pay for the wars. I am all for pay as you go, but this has not been a republican plan for sometime.
I have seen the graph from the OMB that shows the effect of the wars (Iraq, Afghanistan) on spending. While spending increased slightly, the graph clearly shows the spending skyrocketing under Obama.
He can use the excuse of the two wars all he wants, but the war spending isn't the reason we are in the position that we are in today. We are in this position because of Obama's spending. Period!
Obama is an incompetent boob, who has no business experience and has no idea how an economy works. He doesn't understand economics. The man is a complete and utter failure and a total idiot!
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