General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsOne of the most disingenuous criticisms of the deal:
It ends the payroll tax cuts, which raises taxes on everyone earning less than $100,000.
When the payroll tax cut was enacted, a lot of people claimed it was a secret plot by President Obama to undermine Social Security. Now, it's a good thing?
Even those who supported it as stimulus acknowledged that it had to be temporary.
Should the President work to bring this back and make it permanent?
Dawgs
(14,755 posts)ProSense
(116,464 posts)dawg
(10,622 posts)But it's probably a little soon to be raising taxes on the working class - especially when compromises have been made to prevent income taxes from rising on the $250K to $450K crowd.
Someone making $30,000 working a job will see their taxes go up. An investor pulling down $400K a year will not. (Except for Obamacare provisions.) Some people don't think that is fair.
ProSense
(116,464 posts)When it was enacted that was the argument supporters used, and still only as a temporary measure.
How can it possibly be the argument being used by those who thought then that it undermined the program?
dawg
(10,622 posts)I preferred the Making Work Pay tax credit, but the payroll tax cut did not reduce contributions to the Social Security trust fund. The provisions of the law required the general fund to take the hit for the reduced collections.
GeorgeGist
(25,318 posts)You fell for it.
dmallind
(10,437 posts)That's where an investor gets their income, no?
And of course they will see the same 2% SS bump too.
alcibiades_mystery
(36,437 posts)To deny that is silly.
It is certainly a turn around to now have the FICA holiday be the key provision that should have been retained.
Make7
(8,543 posts)ProSense
(116,464 posts)Still, the point is that the criticism being made is that it raises taxes on low-and middle-income Americans. It's a tax increase on everyone, but you can see why the critics are focused is on those earning less.
The point is not the income levels, but the fact that many of these critics never supported the payroll tax cut originally, and believed that it undermined Social Security.
liberal N proud
(60,334 posts)They keep telling us the program needs to be changed to keep it solvent, how can you put less into it and still make those claims?
Either the program is doing so well, we can cut the amount we contribute or it is doing poorly and needs reform, people are going to have to choose which pony they are going to ride.
Fumesucker
(45,851 posts)For the average working person this will look like a tax increase and you can bet any portion of your anatomy you wish that the Republicans will spin it that way with the enthusiastic help of the M$M.
That rhetorical ploy was guaranteed when the payroll tax holiday was first implemented.
Most working people don't pay enough attention to politics to sort out the spin from reality, we here on DU are pretty far from the average American when it comes to information about politics and the disagreements right here are damn near legendary.
jillan
(39,451 posts)bowens43
(16,064 posts)The entire bush tax cuts were temporary and last night democrats made the vast majority of them permanent .
ProSense
(116,464 posts)The Bush tax cut for the top one percent is history.
Capital gains goes to 23.8 percent and a tax increase also applies to incomes at $250,000
http://www.democraticunderground.com/10022116613
malaise
(268,903 posts)for a money bill.
TheKentuckian
(25,023 posts)No, he shouldn't bring it back it was an error to ever give it because many Democrats are about as anti-tax as TeaPubliKlans. The differ mostly in who they want to pay. Klans want to make the poor and working folks to take the weight and Democrats want the rich to pick up the tab. There is a broad bipartisan consensus that they don't want to pay.
I think the old rates should have been restored for all too. I'd leave or maybe expand the cut for the bottom bracket (which I am not in) and start investing in the country.
bowens43
(16,064 posts)JaneyVee
(19,877 posts)MineralMan
(146,284 posts)in during one of these negotiating frenzies, that will be most excellent.
Harmony Blue
(3,978 posts)the extension of the other tax cuts for the 98% of the population I believe to be also temporary once they are up in five years and the economy is doing better (just a hunch).