Archive for Social Security

The Payroll Tax Cut Battle

Posted in Politics with tags , , , , , , , , on December 21, 2011 by authorcarloscardoso

The payroll tax cut battle in the press needs to be examined from many perspectives. The president by his endorsement of a Senate bill that extended the cut for only two months while saying it needed to be extended for the entire year laid the groundwork for his familiar theme of blaming the Republican led house of representatives when actually the bill they sent to the senate would have extended the cut for the entire year. The senate passed their version knowing it was not the answer and then went home. Senator Reid refuses to work with the house to resolve the impasse even though it did not match the bill sent to them and would require a conference to resolve the differences which would then be voted on in both chambers. The house leadership under Speaker Boehner stood ready to finish the work but Senator Reid played politics with the issue saying you must pass our version or else we won’t have this “necessary middle class tax cut”. This posturing by the Democratic leadership of both the senate and then the administration is nothing more than putting party above the good of the country and then blaming the Republicans for the failure.

Extending the payroll tax cut would save the average American family approximately one thousand dollars a year according to the mainstream media. This averages out to less than twenty dollars a week when one considers what that money was funding, social Security one can’t help but wonder if there isn’t a better way to stimulate the economy. Twenty dollars a week is quite frankly not going to make a difference in stimulating the economy but will continue to hurt the solvency of this important program. Weighing the benefits of this tax cut against the cost to a social security program that was already headed towards insolvency one can’t help but question the wisdom of extending the tax cut. Unfortunately this is nothing more than political theatre. Neither party wants to be perceived as being against a middle class tax cut so each party passed a bill to extend it. This tax cut should be allowed to expire and a better way found to help our economy grow.