The Tax Hike No One Is Talking About | TigerDroppings.com

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Bard
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BR
Member since Oct 2008
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The Tax Hike No One Is Talking About



This is a completely seperate issue from the Bush tax cuts/fiscal cliff and has bi-partisan support.

LINK

quote:

To help offset the income lost during the surge in unemployment following the 2007, Congress and the White House gave American households a small "tax holiday" starting in 2011 and followed it up again this year.

While unemployment remains high, consumer spending has perked up strongly in the last few months. That extra spending power could take a big hit if, as now appears likely, the Obama administration's payroll tax holiday expires at the end of this year.

"The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire," said Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee. "The continued extension of a temporary payroll tax holiday has serious long-term implications for Social Security and, frankly, it's not even clear that it has helped to boost our ailing economy."

Enacted in 2010, the tax holiday was designed to help pull a stagnant economy out of the doldrums by boosting consumer spending, which accounts for roughly 70 percent of gross domestic product.

The money came from taxes paid to fund Social Security, half of which is paid by employers and the other half by workers. For 2011 and 2012, Congress and Obama cut the share paid by workers from 6.2 percent to 4.2 percent.

That meant someone making the median income of about $50,000 saved $1,000 a year, or a little more than $19 a week.


What this means is that regardless of what happens with the Bush tax cuts, *everyone* is getting a tax increase come January 1.







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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84448 posts

re: The Tax Hike No One Is Talking About


quote:

*everyone* is getting a tax increase come January 1.

More accurately, everyone on a payroll is getting a tax increase. Those who don't work or don't work on a payroll basis won't be affected.






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mmcgrath
LSU Fan
New Jersey
Member since Feb 2010
6727 posts

re: The Tax Hike No One Is Talking About


quote:

What this means is that regardless of what happens with the Bush tax cuts, *everyone* is getting a tax increase come January 1.


As it should.






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Bard
LA-Monroe Fan
BR
Member since Oct 2008
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re: The Tax Hike No One Is Talking About


quote:

As it should.


What's more important, increasing government spending or improving the economy? If the former, why? If the latter, how does raising taxes do this?






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Bard
LA-Monroe Fan
BR
Member since Oct 2008
16887 posts

re: The Tax Hike No One Is Talking About


quote:

More accurately, everyone on a payroll is getting a tax increase. Those who don't work or don't work on a payroll basis won't be affected.


nit-picker :p






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mmcgrath
LSU Fan
New Jersey
Member since Feb 2010
6727 posts

re: The Tax Hike No One Is Talking About


quote:

What's more important, increasing government spending or improving the economy? If the former, why? If the latter, how does raising taxes do this?
Letting the payroll tax holiday expire won't increase spending one dime. It simply pays for what we are already spending. I don't know why this is such a difficult point.

Edit: In fact it reduces the necessary spending of federal tax dollars to make up the difference.



This post was edited on 12/6 at 10:42 am


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BugAC
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Baton Rouge
Member since Oct 2007
19459 posts

re: The Tax Hike No One Is Talking About


quote:

mmcgrath


Simple question: Do you want the Obama administration to make drastic spending cuts? Or do you think that a simple tax hike will offset the costs of government spending?






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CajunAngele
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Member since Oct 2012
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re: The Tax Hike No One Is Talking About


After this payroll tax holiday goes away. Paychecks will be even smaller on top of the job loss,inflation competing with paychecks that have not seen a cost of living allowance in so long people don't know what it is?





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LSURussian
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Baton Rouge
Member since Feb 2005
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re: The Tax Hike No One Is Talking About








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Bard
LA-Monroe Fan
BR
Member since Oct 2008
16887 posts

re: The Tax Hike No One Is Talking About


quote:

Letting the payroll tax holiday expire won't increase spending one dime. It simply pays for what we are already spending. I don't know why this is such a difficult point.

Edit: In fact it reduces the necessary spending of federal tax dollars to make up the difference.


It works, but only in Fantasyland. Please go back and show me where anytime in at least the last 30 years where an increase in taxes hasn't been accompanied by an at-least commensurate increase in spending. You can't because it doesn't exist. Congress is like a drug addict with money being the drug of choice. The more you give them, the more they will increase their spending.

Want proof? Just look at the fiscal cliff "discussions" going on. The spending cuts that are being proposed are cuts on future spending increases or just future spending, not current spending.




Since it looks like this got lost in that other thread...

quote:

mmcgrath


When you go over your own budget, do you go to your employer and demand a raise to cover it? Why should we allow this of the federal government? Is it that you think that any federal spending increase must be worthwhile?







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TROLA
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BATON ROUGE
Member since Apr 2004
6578 posts

re: The Tax Hike No One Is Talking About


quote:

What's more important, increasing government spending or improving the economy? If the former, why? If the latter, how does raising taxes do this?


Social Security is no longer a net receipt producer for the Government. The whole idea behind the deduction was a fallacy and should never have passed within any circumstance with the current projections.






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50Mullets
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A more civilized age
Member since Oct 2012
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re: The Tax Hike No One Is Talking About


quote:

More accurately, everyone on a payroll is getting a tax increase. Those who don't work or don't work on a payroll basis won't be affected.


Yeah, those rich wall street fat cats that live off investment income and don't pay taxes and eat babies won't see their taxes go up because of this.






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junkfunky
LSU Fan
Member since Jan 2011
14316 posts

re: The Tax Hike No One Is Talking About


quote:

It simply pays for what we are already spending.




quote:

Edit: In fact it reduces the necessary spending of federal tax dollars to make up the difference.


go on...






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TigerFanatic99
LSU Fan
Granger, IN
Member since Jan 2007
3670 posts

re: The Tax Hike No One Is Talking About


this was a HORRIBLE idea to begin with. so much for SS being a lock box. why we would ever divert funds from that program that is already insolvent was beyond my admittedly limited comprehension abilities.

Let it expire, then reform all of SS.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84448 posts

re: The Tax Hike No One Is Talking About


quote:

those rich wall street fat cats that live off investment income and don't pay taxes and eat babies won't see their taxes go up because of this.


And I don't even work on Wall Street....






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Bard
LA-Monroe Fan
BR
Member since Oct 2008
16887 posts

re: The Tax Hike No One Is Talking About


quote:

this was a HORRIBLE idea to begin with. so much for SS being a lock box. why we would ever divert funds from that program that is already insolvent was beyond my admittedly limited comprehension abilities.


I can agree with that.


quote:

Let it expire, then reform all of SS.


I'm torn on letting it expire. Yes, SS needs its funding shored up and this was a pretty stupid thing to do considering how bad off SS is, but nailing that much of the economy (because it's both workers and employers) at a time like this seems even more counter-productive.






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