Tuesday, December 13, 2011

A Dose of Reality on Obama's Payroll Tax Holiday

Barack Obama wants credit for "cutting taxes."  He wants to call continuing the ten year old Bush tax rates a "tax cut" (since, as we all know, liberals believe that the proper tax rates are whatever rates the last Democrat set).  He also proposed and passed a piddling little 2% Payroll Tax Holiday.  The average American family (family of 4, median income of $54,338) by the way, saw a whopping cut of $22 per person per month.  So in other words, the whole family can go out once a week for a $5 footlong at Subway. 

The Democrats want to extend this holiday and, here's the problem, pay for it with a "Millionaire's Surtax."  Senate Republicans thankfully blocked this job-killing provision. These "evil" millionaires Obama wants to tax includes the majority of people who own businesses and create jobs.  Now giving every family $22 extra per person really isn't going to create jobs.  Raising taxes on job creators, however, is likely going to cost jobs.  Despite what the Left and their favorite budgeting technique, static budgeting, will predict, these job creators will not just bend over, grab the ankles and take it, these millionaires will not spend their money the same way.  They will instead adjust their businesses to ensure that their profits aren't harmed, by either raising prices, cutting production, and/or cutting employees.

As if that wasn't a good enough reason to oppose this plan, there is a moral issue as well.  Do you know what the Payroll Tax does?  It is the mechanism for paying for Social Security.  You pay into Social Security now and when you retire you receive your benefits.  Now the Obama Administration wants to tax the wealthy to pay for a Payroll Tax Holiday. Translation:  Millionaires are now forced to pay for YOUR retirement. That's right folks, Liberals now believe you are owed a Social Security check paid for by those who have dared to succeed!

The entire concept is reprehensible, friends. Absolutely nobody owes you a retirement. Social Security exists to be a self-financed retirement plan (self-financed by YOU for YOU) and now Obama wants one of the few self-sustaining parts of government to become a new taxpayer funded entitlement where government robs from the rich and gives to the poor.

What is Obama's reason?  He claims it will create jobs.  I've said this before and I'll say it again: Payroll tax holidays aren't going to create jobsOnly set tax rates will, and that would need to be cuts to the taxes that go to the general fund, not through cutting the funding mechanism of Social Security.  Now not only does Obama want to extend this joke of a tax cut, he now wants to harm job creation in the process!  It's foolhardy.

Obama will blame the Republicans for blocking this bill, as he already has, and the Media will carry the water for Obama, but friends, this is a tremendous lie.  Obama wants credit for cutting taxes to "create jobs" but he wants to pay for it by taking venture capital out of the pockets of job creators.  It makes about as much sense as stealing all the food from one family's cupboard to feed another, then claiming you're solving the hunger problem.

1 comment:

  1. Except, if we live long enough, "we" will receive 3 of 4 times as much as we ever put it. In 1940, 42 taxpayers supported each retiree. Right now each retiree is supported by 3.3 workers.


    It's estimated that by 2030 it may be 2:1 or even 1:1. That is unsustainable. It hasn't been "me" paying for myself for a long time, though that's exactly what it should be and should revert to. I should only get out as much as I paid-in, plus the interest the govt made on my money.


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