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The problem with the "payroll" tax cut is that the "payroll" tax is what pays for social security, which is the greatest drain (next to medicare) on the federal budget. So cutting the "payroll" tax is really just undermining social security benefits.
How did you live before the tax holiday went into effect in 2011? I am less than thrilled to be losing the holiday. Trying not to become too dependent on the extra cash, instead I funneled a chunk into college savings. Perhaps we ordered a few more pizzas. There was no way I wanted to be hooked on the cash and find myself high and dry when the whole thing came to an end.
Yes there are scam and misappropriations, and reducing contributions by 2% per wage earner hurts, too.
Think of it this way -- before the 2% FICA tax 'holiday' (part of the Tax Relief Act of 2010) that money was going into SS. Earners didn't have that money, never saw that money. With the TRA they're suddenly getting extra money each week. TRA ends, money goes back where it should have been going all along.
It was never intended to be a permanent break.
We lived without that extra money your entire working life UNTIL the TRA of 2010. The Gov gave the kiddies candy and now is yanking it away.
Its not the extras most people used it on... it was to pay for the increases in the prices of things we need to live.... like food, gas, oil, utilties, you know basic essentials. Since almost no one is getting even cost of living raises, but the price of everything went up. Do the math.
The problem with the "payroll" tax cut is that the "payroll" tax is what pays for social security, which is the greatest drain (next to medicare) on the federal budget. So cutting the "payroll" tax is really just undermining social security benefits.
What is undermining SS is Congress stealing it to pay for for pork spending.
It wouldn't have mattered whether Romney had won, we still would be complaining all the same. The payroll tax holiday (which went from 4.2 to 6.2% on 1/1/2013) was extended from 2010 to 12/31/12. Congress simply extended it another 2 years. Would Obama have been re-elected had he just let the tax go into effect on 1/1/2011 instead of 1/1/2013? Well we will never know. Probably not. This is all politics.
It sucks that we will all be feeling the squeeze because the tax holidays over, but everyone will have to pay more to subsidize all the wars from Bush, and for Obamacare.
The only way to reduce thr massive deficit we have now is through economic growth creating more wealth and thus raising tax revenue, because the amount of income and wealth subject to taxation will be greater than it is now if more people have jobs and make more money. Otherwise, we've got a trillion dollar deficit EVERY SINGLE YEAR with no way to close it. The tax increases that were just passed will make up like 100 billion dollars a year thanks to the payroll tax and 60 billion dollars a year thanks to the tax on the rich. That still leaves like 800-900 billion dollars a year to cut. There's no freakin' way Congress will cut that much out of the budget. You'd have to cut the Pentagon by a third, Social Security and Medicare by a third, and eliminate every domestic program.
It wouldn't have mattered whether Romney had won, we still would be complaining all the same. The payroll tax holiday (which went from 4.2 to 6.2% on 1/1/2013) was extended from 2010 to 12/31/12. Congress simply extended it another 2 years. Would Obama have been re-elected had he just let the tax go into effect on 1/1/2011 instead of 1/1/2013? Well we will never know. Probably not. This is all politics.
It sucks that we will all be feeling the squeeze because the tax holidays over, but everyone will have to pay more to subsidize all the wars from Bush, and for Obamacare.
The only way to reduce thr massive deficit we have now is through economic growth creating more wealth and thus raising tax revenue, because the amount of income and wealth subject to taxation will be greater than it is now if more people have jobs and make more money. Otherwise, we've got a trillion dollar deficit EVERY SINGLE YEAR with no way to close it. The tax increases that were just passed will make up like 100 billion dollars a year thanks to the payroll tax and 60 billion dollars a year thanks to the tax on the rich. That still leaves like 800-900 billion dollars a year to cut. There's no freakin' way Congress will cut that much out of the budget. You'd have to cut the Pentagon by a third, Social Security and Medicare by a third, and eliminate every domestic program.
How do you create economic growth when you just gave a 2% tax increase to everyone?
How do you create economic growth when you just gave a 2% tax increase to everyone?
You assume everyone is getting an automatic 2% increase from the IRS come April 15. This is not true. We have a progressive tax system, it's not like people on welfare or those earning $50K or less will be paying the same rate as someone earning $100 or $200K. The 2012 tax tables are actually staying the same save for adjustments by Congress to account for geographical location and inflation. See: 2012 Tax Bracket Rates | Bankrate.com
It wouldn't have mattered whether Romney had won, we still would be complaining all the same. The payroll tax holiday (which went from 4.2 to 6.2% on 1/1/2013) was extended from 2010 to 12/31/12. Congress simply extended it another 2 years. Would Obama have been re-elected had he just let the tax go into effect on 1/1/2011 instead of 1/1/2013? Well we will never know. Probably not. This is all politics.
It sucks that we will all be feeling the squeeze because the tax holidays over, but everyone will have to pay more to subsidize all the wars from Bush, and for Obamacare.
The only way to reduce thr massive deficit we have now is through economic growth creating more wealth and thus raising tax revenue, because the amount of income and wealth subject to taxation will be greater than it is now if more people have jobs and make more money. Otherwise, we've got a trillion dollar deficit EVERY SINGLE YEAR with no way to close it. The tax increases that were just passed will make up like 100 billion dollars a year thanks to the payroll tax and 60 billion dollars a year thanks to the tax on the rich. That still leaves like 800-900 billion dollars a year to cut. There's no freakin' way Congress will cut that much out of the budget. You'd have to cut the Pentagon by a third, Social Security and Medicare by a third, and eliminate every domestic program.
The problem with increased revenue is the associated spending cuts are no where to be found. What you'll find is most of the cuts on the table are more of a slowing of spending and not an out-and-out cut. Without real spending cuts and a fundamental change in how our representatives conduct the business of running our country, this will be just the first of many increases that really target the middle class.
Our leadership, if you can call it that, from the Dems and Republicans on Capital Hill right up to Obama II, spend on pork and special interests, allowing corps to really run the show. If the revenue is there, they will find a way to spend it.
Consider the scale of the TARP bailout and associated bail-outs of Detroit. They dwarf the size of stimulus enacted to help the middle class. But what's most telling, is how the politicians act that stimulus and federal programs directed towards middle-class citizens is the spoiler and must be cut in the name of deficit reduction.
So, the most endangered species today is not the screech owl, but the middle-class taxpayer.
Don't forget that the two income households will take a larger hit.
As for the Ponzi scheme that is SS, no argument there. I've watched the retirement age get shifted to later, saw them incorporate the claim younger, get less scheme. We've seen people get their pitchforks out when elected officials suggest privatizing SS. What is the answer? How do we ensure it will be there 15, 25, 50 years from now?
I have a simple answer....get rid of the limit! Why should it be once you hit the cap, you don't pay into it the rest of the year? We are losing mega amounts of $ with this stupid policy.
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