The Payroll Tax Issue

[mikoyan29]

Given the potential state of Social Security in the next few years, I feel that the payroll tax holiday wasn't probably a good idea but given the fact that it affects every working person it's probably the least offensive idea to come out of Washington in a while. That being said, how come the Republicans can bend over backwards to support more costly and less fair tax cuts but have to find a way to "pay" for this one? The payroll tax is one that every working American pays, so cutting it affects every working American. Capital gains and divedends only affect those people that use those things. Why do the Republicans hate working people so much?

[HYHYBT]

Congressional ethics. Once you're bought, stay bought, and that includes convincing as many as possible that you're doing it for their own good.

[mikoyan29]

Don't get me wrong, I get that this will probably hurt Social Security but still everyone who works pays this tax.

[Panacea]

It won't hurt Social Security. The shortfall to the SS Trust fund is made up from the General Fund (which is then loaned back to the General Fund when the SS Trust Fund buys US Treasuries). Social Security has plenty of money to pay its obligations and won't not take in enough to pay out until 2032 (right around the time I'll start collecting, dammit).

You're right this tax is not a great idea long term, but not because of any damage to Social Security . . . but because it is ballooning the deficit. You know, the one the Repubs keep screaming we need to deal with?

[mikoyan29]

It won't hurt Social Security. The shortfall to the SS Trust fund is made up from the General Fund (which is then loaned back to the General Fund when the SS Trust Fund buys US Treasuries). Social Security has plenty of money to pay its obligations and won't not take in enough to pay out until 2032 (right around the time I'll start collecting, dammit).

You're right this tax is not a great idea long term, but not because of any damage to Social Security . . . but because it is ballooning the deficit. You know, the one the Repubs keep screaming we need to deal with?

I guess that's what I don't get, they'll bend over backwards to defend the taxes that overwhelmingly benefit the rich but then when it comes around to the tax that benefits everyone that works they lay an egg. And when this is brought up they whine about class warfare.

[Duelist925]

I guess that's what I don't get, they'll bend over backwards to defend the taxes that overwhelmingly benefit the rich but then when it comes around to the tax that benefits everyone that works they lay an egg. And when this is brought up they whine about class warfare.

Theres an inherent flaw in your reasoning--your assuming they would ever do anything that would make large scale sense, as opposed to making them and their a quick buck.

[Panacea]

I guess that's what I don't get, they'll bend over backwards to defend the taxes that overwhelmingly benefit the rich but then when it comes around to the tax that benefits everyone that works they lay an egg. And when this is brought up they whine about class warfare.

It's maddening. Unfortunately, most people don't really understand that the payroll tax is not a great idea. It's a hard idea to grasp when you can't pay the mortgage.

The Republicans would not shed a tear if this tax cut hurts Social Security. They've been trying to kill it for forty years. They'll posture, but they'll extend the tax hike, and then use it as a wedge to destroy Social Security once and for all, I fear.