White House Proposes Payroll-Tax Holiday

[Sgt Beavis]

So what are your thoughts on this one?

http://online.wsj.com/article/SB10001424052748704156304576003441518282986.html?mod=WSJ_hp_LEFTWhatsNewsCollection

WASHINGTON—Aides to President Barack Obama are proposing a one-year reduction in the payroll tax as part of negotiations with Congress on a broader package to stave off income-tax increases due to take effect next year.

Under the White House plan, the Social Security tax paid by workers would drop temporarily by 2 percentage points, to 4.2% from 6.2%, a person familiar with the proposal said. For a worker earning $40,000, the tax savings would be $800.

The proposal has not won the approval of congressional Democrats or Republicans. Its emergence in the broader tax negotiations is a sign that the White House is trying to break the logjam on those talks before the end of the year, when tax cuts signed into law by former President George W. Bush are due to expire.

White House officials proposed the cut as a way to stimulate the economy, said the person familiar with the talks. The proposal would take the place of an earlier White House push to extend Mr. Obama's signature Making Work Pay tax cut, which reduced income taxes for middle-income individuals by $400 a year.

Republicans had adamantly opposed extending Making Work Pay, and House Democrats were cool to it, as well. But Mr. Obama and Democrats are likely to accept a Republican demand that the Bush-era tax cuts be extended even for wealthy taxpayers, and the White House is looking for more in return for agreeing to extend the cuts for higher earners.

[8mpg]

I dont get why the Libs have such a problem with wealth people tax percentage extension. Whats the big freaking deal? They just dont want to cave, so they keep thinking up other shit and wasting time.

[The King]

I'd rather have the Making Work Pay tax credit than a 2% reduction in my Social Security payroll tax, although economically the payroll tax reduction would amount to more $$ in my case.

[The King]

and from the mouth of Pelosi:

"Have to pay for unemployment insurance, we don’t have to pay for tax cuts for the rich. Tax cuts for the rich do not create jobs. They haven’t throughout the Bush Administration. Unemployment insurance creates jobs; does not add to the deficit."

[YALE]

I think we're damned if we do, and damned if we don't in the short term. A reduction in payroll taxes isn't, in most cases going to translate to more jobs. Most industries are trying to cut every cost they can, and not add people. If they're already afloat, they're not going to add jobs because you reduced their tax burden temporarily, because you can't plan on that for the long term. We need permanent fixes from congress, not short term solutions.

[Broncojohnny]

Why do these libtards want to cut taxes to stimulate the economy? If you listen to them talk, higher taxes don't hurt the economy to begin with.

[Denny]

If they just taxed the people the way they should be taxed, none of thid would even be an issue.

[Hollywood]

so they are going to cut taxes and spend more on unemployment...

[OldGuysRule]

I won't be seeing it but as long as they extend all the Bush tax cuts I'm good with whatever they do.

Also gives me a couple of more years to groom my company for sale before the cap gains rate goes back up.

[Denny]

I won't be seeing it but as long as they extend all the Bush tax cuts I'm good with whatever they do.

Also gives me a couple of more years to groom my company for sale before the cap gains rate goes back up.

See now... putting that two year timeline on it is going to get other business owners to think just like Eric. I don't blame him one bit, but we're going to have a mass exodus of successful businessmen and investors when it gets close to deadline. Peter Schiff (Euro Pacific) is already building his interests outside the States and only sustaining what he currently has within this country, if not decrease.

They're not solving anything.

[YALE]

Looks like Obama folded on the Bush tax cuts.

[8mpg]

and from the mouth of Pelosi:

"Have to pay for unemployment insurance, we don’t have to pay for tax cuts for the rich. Tax cuts for the rich do not create jobs. They haven’t throughout the Bush Administration. Unemployment insurance creates jobs; does not add to the deficit."

I do see how that whore can come up with that statement. How the fuck does paying people who are out of work create jobs? How does spending hundreds of billions of dollars that we dont have not add to the deficit?

[Odizzle]

what if they distribute the (X) amount they want to take from small business's that make more than 250k among their employee's? We all know the more we make the more we spend. Instead of letting the govt. fuck it off.

[GhostTX]

I do see how that whore can come up with that statement. How the fuck does paying people who are out of work create jobs? How does spending hundreds of billions of dollars that we dont have not add to the deficit?

It's the stupid logic that unemployed people that get gub'ment dollars spend it on goods, which in turn someone has to make those goods.

Meanwhile, rich people just horde their money in Swedish banks and never spend it.

Wonder what Pelosi's money does? I guess, of course, she's the exception to "rich" people. I'm sure every dollar she invests makes jobs...or something.