Zera's Blog

A Citizen's View from Main Street

Payroll Tax Cut Fight: ‘Wall Street Journal’ Editorial Rips Boehner, McConnell


The Wall Street Journal opinion piece passes out the business-c­entric blinders.

“No employer is going to hire a worker based on such a small and temporary decrease in employment costs, as this year’s tax holiday has demonstrat­ed. The entire exercise is political, but Republican­s have thoroughly botched the politics.”

True, but not the point of the exercise. Employers will hire when they see customers with money coming their way – which is the point of the tax holiday: Putting more money in consumer pockets. Wasn’t it the republican­s who said that people know best how to spend their own money? Conservatives consistently devalue the necessity of funding the demand side of supply and demand. Instead, they are aggressively working to weaken the economic foundation of the middle class.

“Their first mistake was adopting the President’­s language that he is proposing a tax cut rather than calling it a temporary tax holiday. People will understand the difference­—and discount the benefit.”

So people will understand when it comes time to end the Bush “tax holiday” for the rich?

“Republica­ns have also achieved the small miracle of letting Mr. Obama position himself as an election-y­ear tax cutter, although he’s spent most of his Presidency promoting tax increases and he would hit the economy with one of the largest tax increases ever in 2013. This should be impossible­.”

Except that Obama44 has been cutting taxes. The “tax holiday” in question is only one example. Conservati­ves keep changing the definition­s. Either the House republican­s have voted for a middle-cla­ss tax increase, or we need to end one of the largest unfunded tax holidays ever.

Conservatives are nibbling at the edges of doublethink. The Obama44 cuts to payroll taxes and the Bush43 income tax cuts to income taxes are both temporary cuts. There is one notable difference between the two though. The Obama cuts are being paid for – how is a major point of contention. The Bush43 cuts went straight to the national debt.

The President and the Democrats want the rich to pay for extending the payroll tax cuts, and put some of that idle money back in circulation as an economic stimulus. The republicans want the middle class and poor to pay for it, which would negate the simulative effect and hurt the economy in the long term. Redistribution of wealth at its most ineffective.
Read the Article at HuffingtonPost

Advertisements

December 21, 2011 - Posted by | 2012 Election, Campaign Strategy, Economics, Legislation | , , , , , , , , , , , , , , ,

1 Comment »

  1. Question, how can we blame anyone when the democrats control 2/3 of the government, the Senate and the Presidency. The Democratic controlled Senate has blocked over 20 bills that the house has tried to get to the President. I don’t think the issue here is liberal views versus conservative views, its a power struggle and a ineffective congress. Too much finger pointing and not enough mediation. We need sustainable development not more redistribution from this hand to that. It all spends the same regardless of who’s hand its in. Right, a dollar is a dollar, it only buys a dollars worth. I think both parties have good ideas, but we need to forge those ideas together and clear a path forward. Its like trying to push the opposite ends of a magnet together.

    Comment by Canteen Contributor | December 21, 2011 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: