At the end of this month the payroll tax holiday will expire, and if allowed to lapse, it will come as a tax increase for working lower and middle class Americans. The Democrats, including Obama, are in favor of an extension while many Republicans are not. Many Republicans are demanding the extension be offset by spending cuts elsewhere or simply done away with altogether.
According to Macroeconomic Advisers, allowing it to lapse “would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs.” An analyst at Barclay’s estimated that letting the cut expire would knock 1.5 percent off of first quarter growth next year. Ameriprise Financial Services, meanwhile, estimated that extending the cut “is likely to add between 750,000 to 1 million jobs.” “Payroll tax cuts are very powerful,” added Allen Sinai, chief economist of Decision Economics. “They provide a boost to direct income and, in turn, spending, which is important to growth.”
Oh wait…forget that part…no, the reason some Republicans would be so willing to let it expire is our out of control deficit…fiscal prudence at its best, yes-sir, so fiscally responsible these Republicans, the cult of Norquist clan, they would allow a tax cut to expire. What an example of sacrifice? Imagine that, they finally agreed, not all tax cuts could be forever sacrosanct…oh, and the fact this party is oft accused of defending only the wealthy, and the fact this tax cut only benefits the working poor and middle class, not the wealthy…
I’m sure this is coincidence.
Has to be.
Just as I’m also sure it is only coincidence the Bush tax cuts, those gifts to the rich and a large part of our current deficit, weren’t required to be paid for while the payroll tax holiday, so many Republicans demand, must be offset by cuts elsewhere in the budget.
Yes, this Republican coincidence is but one of many these days…
Take a look at the job creators, for instance. Nick Hanauer, a successful venture capitalist recently wrote an op-ed, stating:
Consider, for example, that a puny 3 percent surtax on incomes above $1 million would be enough to maintain and expand the current payroll tax cut beyond December, preventing a $1,000 increase on the average worker’s taxes at the worst possible time for the economy. With a few more pennies on the dollar, we could invest in rebuilding schools and infrastructure. And even if we imposed a millionaires’ surtax and rolled back the Bush- era tax cuts for those at the top, the taxes on the richest Americans would still be historically low, and their incomes would still be astronomically high…Rich businesspeople like me don’t create jobs. Middle-class consumers do, and when they thrive, U.S. businesses grow and profit.
Yet, the Republicans would rather it be discovered they wet the bed than raise taxes on the wealthy, on those job creators…God save the job creators, even if they call bullshit on their actual ability to create jobs…and I suppose this only makes no sense at all, none…I mean, the Bush tax cuts have been in effect for what, 10 years or so, yet strangely enough we’ve had a recession, we’ve watched a looting of pension plans, a housing collapse and high sustained unemployment for years… And through it all, the fact those taxes on the wealthy, meant to create jobs have done everything but create jobs?
But I digress, back to that tax break the Republicans are so sketchy about, the one that coincidentally doesn’t help the wealthiest of this country…when John Boehner was asked if letting the tax cut expire would hurt the economy, he replied, “I’m not an economist. I don’t know what kind of impact it’s going to have on the economy.”
Not an economist?
Yet he was sure the deficit didn’t matter when Bush was president, growing exponentially due to unfunded wars, tax breaks for the wealthy and that huge gift bag to pharmaceutical companies.
Just as he is now sure, that since Bush is no longer President, the deficit is destroying America as we know it, that if allowed to continue, not only will the deficit destroy our ability to manufacture American flags for the waving, but your mother’s apple pie? As a country, we will no longer be able to support the cost involved in using ovens, ever again. We will be one flag-less pie-less country, that much closer to gay marriage if we don’t do something about the deficit, like yesterday. He means…now.
Oh, but that Boehner suddenly lost his economist credentials, that he devolved into financial confusion when it was time for this tax break that doesn’t expressly help the wealthy?
Another matter of simple coincidence.
However…to be fair…Boehner has come around the past day or so, the GOP is coming around and now say the payroll tax holiday should be passed. John himself has said, ““The fact is that Republicans are doing everything we can to allow American families and small businesses to keep more of what they earn.”
Course, that was Public John Boehner. And what did Private John have to say about the payroll tax holiday?
Well, behind closed doors, he told his membership they were pushing a package that not only included the extension, but also more environmental deregulation, more sales of broadband spectrum and a change in policy to help pass the Keystone XL pipeline so, you know, he could turn “chicken shit into chicken salad.”
The ingredients of chicken salad of course being heavier pollution, sick kids, global warming, monopolies on spectrum leading to a lack of diversity on our airwaves, and a big fucking pipe to take oil all the way across our country from Canada to the Gulf of Mexico, oil from tar sands development which is about as environmentally friendly as, well, as most Republican policy.
Oh, and that John Boehner didn’t refer to this tax break, which doesn’t help the wealthy, as “chicken shit” in public?
Coincidence…you know it.
Yes…coincidence…of course this is what it is, what all of this is.
Cutting taxes on job creators so they continue to not create jobs, unfunded tax breaks for the wealthy while tax breaks for the working poor and middle class must be offset by spending cuts, spectrum sales and pollution, and Boehners ability to be an arch-economist who sometimes, economically speaking, is dumb as a stump…
All of it coincidence…surely.
What other explanation is there?
Have a nice day.