Wednesday, August 24, 2011

Republicans Want To Raise Taxes

Okay, that's a bit of hyperbole, but in the discussion of our current economic and political state, it seemed in keeping with the tenor of the dialogue. Republicans in Congress are likely to approve of raising the payroll tax that feeds into Social Security from 4.2 percent back to 6.4. A year ago, the President wrangled this bit of tax relief for a limited time only, and now the Grand Old Party would like to have us wage-earners kick that extra two-plus percent back into the kitty. "It's always a net positive to let taxpayers keep more of what they earn," says Texas Representative and member of the House Leadership team Jeb Hensarling, "but not all tax relief is created equal for the purposes of helping to get the economy moving again."
Twelve months of this tax reduction cost the government about one hundred and twenty billion dollars this year, and a similar amount next year if it's renewed. Why not have everybody pay their fair share? Isn't that the deal, after all? Well, if you consider that Social Security payroll taxes apply only to the first hundred thousand dollars of a worker's wages. Therefore, two thousand dollars is the biggest benefit anyone can gain from the one-year reduction. A vast majority of Americans make less than a hundred thousand dollars a year. Millions of workers pay more in payroll taxes than in federal income taxes. Guess what portion of America would feel the pain, or relief from this particular measure?
If you guessed the working class, you may be living in a blue state of mind. If your mind is clouded by visions of job-creators, start making preparing your excuses now.

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