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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-02-11 10:58 AM
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decoding the payroll tax cut: how well does it work?
http://www.nationofchange.org/decoding-payroll-tax-cut-...

As Congress tries to deal with its long list of unfinished business, among the top and most contentious items has been the proposed extension of the payroll-tax cut.

It has certainly inspired plenty of political posturing. Democrats have charged Republicans with hypocrisy for opposing a measure that would put hundreds of dollars into the pockets of American workers; Republicans have fired back, accusing President Obama of failed economic policies and misguided efforts to grant tax relief to some while upping taxes on the rich, who they say often create jobs.

But looking beyond the rhetoric, how much has the cut helped the economy? And what do economists say would happen if its not extended? We run through the facts.

First, what is the payroll tax and how big has the cut been?

Take a look at your paycheck, and it will be very clear: The tax is the part of your wages withheld for Social Security and Medicare.

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dtexdem Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-02-11 11:38 AM
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1. Better to cut income tax rates for poor and middle class.
The payroll tax cut further restricts the growth of the Social Security Trust Fund -- our country's investment in our aging future.

And of course, any tax cut should be more than made up for through increased income tax (and other tax) rate hikes on the rich -- and not just the scheduled restoration to the pre-Dubya rates, either.
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xchrom Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-02-11 11:43 AM
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2. +1
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ProgressoDem Donating Member (145 posts) Send PM | Profile | Ignore Fri Dec-02-11 04:55 PM
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7. Well the payroll tax is really the bulk of what the poor pay at least.
There is truth to the Republican talking point that 47% pay no income taxes. Obviously that obscures the rest of the picture, that the poor have the payroll tax burden. Should cut payroll tax rate and eliminate the $106K cap.
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LonePirate Donating Member (898 posts) Send PM | Profile | Ignore Fri Dec-02-11 11:58 AM
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3. It's interesting how the Rs constantly argue for tax cuts but they say this one didn't work
Their hypocrisy has reached a level of head-spinning not seen since "The Exorcism."
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joshguitar Donating Member (138 posts) Send PM | Profile | Ignore Fri Dec-02-11 02:45 PM
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6. hypocrisy?
they re for tax cuts, just not for poor or middle class folks. this shit is ridiculous.
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zalinda Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-02-11 02:21 PM
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4. A news reporter here, got an extra $10 in his pay check.
He went around and spent that $10 at the flea market. It certainly was a big joke to him.

zalinda
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Bill USA Donating Member (628 posts) Send PM | Profile | Ignore Fri Dec-02-11 02:30 PM
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5. here's the quote from WaPo: without taxcut extension things will get a good deal worse.
"in terms of the larger picture, economic analysts have said that unless the payroll-tax cut and other short-term measures are extended, fiscal drag will be intense in 2012. Heres The Washington Post:

Goldman Sachs economic forecaster Alec Phillips estimated that allowing the payroll-tax cut to expire would reduce growth by as much as two-thirds of a percentage point in early 2012. Macroeconomic Advisers estimates that it would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs by the fourth quarter.

Mark Zandi, chief economist at Moodys Analytics, went a little further , estimating that if both the payroll-tax cut and extended unemployment insurance are allowed to expire, real GDP growth will fall by nearly a percentage point and about 1 million jobs will be lost by the end of 2012.

Ultimately, a simple extension of the payroll-tax cut means a continuation of what workers already have. Thats why economists and analysts talk less about any possible upside such a boost to consumer spending and cast it as a way to avert further damage to the economy."
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Dec-03-11 12:52 PM
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8. It's a little extra money in your pocket now, IF you have a job. nt
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