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Payroll Tax Holiday May Expire Jan 1

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When Congress extended the Bush era tax cuts, one of the benefits to lower income earners was the introduction of a payroll tax holiday. For one year, 2% of your FICA (Social security & medicare payroll taxes) will not be collected and you get a little extra take home pay. The actual benefit depends on your income but this is a tax cut that affects a large portion of taxpayers (basically anyone who has earned income).

It turns out that the payroll tax holiday may be on the chopping block as Republicans look to block it because it do it’s part in “helping to get the economy moving again,” says Representative Jeb Hensarling of Texas (Republican). It’s the latest battleground in the debate over the economy and the federal deficit.

Various pundits will paint this however they’ll paint it but it just seems a bit hypocritical to OK huge tax cuts (the Bush tax cuts) and then point to the deficit when it comes to this one. I guess watching the deficit just happens to be the flavor of the day, I just wish we, the general public as a whole, weren’t so easy to deceive.

{ 11 comments, please add your thoughts now! }

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11 Responses to “Payroll Tax Holiday May Expire Jan 1”

  1. Mike says:

    Since the gov’t can’t really do anything to affect the economy except making it worse. The best they can do is to fix the deficit problem. I really don’t mind them doing this.

  2. Ryan says:

    But will it really be used to tackle the deficit? Probably not.

    • Mike says:

      I’m betting that since it’s the republican (tea party) that are pushing for this, that they will make it a point to actually use it to lower the deficit. If the Democrats were calling for raising taxes to lower the deficit I’d be as skeptical as you.

  3. Seth says:

    If the general public was less “easy to deceive”, liberals like you Jim would have never been able to push Obama through to becoming President. Then we wouldn’t be in as much of a mess as we are now.

    • Jim says:

      I think you fundamentally misunderstand why we’re in this mess. It’s not because of what Obama did since he came into office just a few years ago. In fact, it’s not even because of Bush for the eight years before that (though billions in war spending didn’t help). Clinton probably had the biggest impact in repealing parts of the Glass Steagall Act that prevent banks from owning other financial companies. So that allowed the conditions that created all the CDO garbage, the housing boom and subsequent bust, and the need to bail out banks once they faced liquidity crunches. Without the bust, it’s less likely we’d have experienced the credit crisis and the recession.

      To say it’s Obama’s fault is like saying the it’s the CDC’s fault for not adequately containing a flu outbreak in a week.

    • saladdin says:

      Seth, you clearly have no understanding at all of what is going on if you can list the cause of the problem in 2 sentences.

      saladdin

  4. Texas Wahoo says:

    “Various pundits will paint this however they’ll paint it but it just seems a bit hypocritical to OK huge tax cuts (the Bush tax cuts) and then point to the deficit when it comes to this one.”

    Under that reasoning, isn’t all politics hypocritical. You’re willing to spend money on X, but you’re not willing to spend money on Y; you’re willing to raise taxes on X, but you’re not willing to raise taxes on Y. Isn’t politics just a system of deciding what to spend money on and what to tax? Aren’t all of these decisions somewhat hypocritical if you look at them broadly enough?

  5. David M says:

    Republicans look to block it because it do it’s part in “helping to get the economy moving again,”

    What does this mean????

    should do be did – in that is worked????

  6. Mike says:

    A cynic might wonder about:

    Payroll Tax Holiday: a temporary tax cut with an expiration date. Arguments for letting it expire are called “letting it expire.”

    Bush Tax Cut: also a temporary tax cut with an expiration date. Arguments for letting it expire called “Class Warfare!”

  7. billsnider says:

    Hey folks…..

    It is all our faults.

    Similarly it is up to all of us to work together to get us out of this mess.


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