2% cut in Payroll taxes for a year

[ThomWV]

Great, run Social Security into the ground just that much faster.

[madmax]

1. Cut Defense spending.

Yeah right, I'll dream on.

[activa8tr]

3. I share your dream, too!

[AlinPA]

2. Infuriating. nt

[SoCalDem]

4. Payroll taxes WITHHELD? or OWED?

One is so so..the other is bad news when taxtime comes around

[ThomWV]

5. No doubt the fine print will make the reduction on the employer's contribution side.

Just a guess, but an educated one - its how shit normally happens.

[Statistical]

10. Nope. employee side. Your paycheck will be 2% (gross) larger next year.

Think of it as Obama giving you a pay raise. :)

[stray cat]

12. Facts are a refreshing change from much of the rhetoric = thanks for accuracy!

[ThomWV]

14. And your contribution to the Social Security System will be 2% less, hastening its death.

[Statistical]

15. Nope you were already corrected on that falsehood.

The trust fund will still increase by the 2%. The deficit spending will be paid for the same way all deficit spending is paid ... via borrowing.

Your statement only makes sense if you believe that the govt giving you a check for 2% of your income (unrelated to payroll tax) would hasten the demise of SS. By that logic any 2% cut in revenue will hasten the demise of the govt in general.

[jp11]

16. Then he'll take it away!

[Hell Hath No Fury]

18. Sorry, not interested in that raise.

I was also not interested in my tax cut.

I am poor as hell but I don't need that deal with the Devil, thank you very much.

[Statistical]

21. Well write a check for 4%+ of your income and send it here:

https://www.pay.gov/paygov/forms/formInstance.html?agencyFormId=23779454

2% for SS reduction.
2% for minimum Bush tax cut converting 15% bracket into 10% bracket on first $6K in income.
(Actually tax reduction could be much larger depending on income, marital status, children, credits, etc)

The treasury gladly accepts donations to pay down the national debt.

[BzaDem]

6. False. They are writing a check from the general fund to the trust fund for the exact amount of the

payroll tax holiday. The trust fund won't be diminished by one penny.

[ThomWV]

7. So its magic money that will come floating down from heaven?

[SoCalDem]

8. manna banana rama lamma dingdong

palloozza:)

[Statistical]

9. No silly money comes from selling bonds to the Chinese.

The Chinese get the money buy selling us junk we don't need.

The cycle of life (dollar version).

Still it has the effect of increasing everyone's paychecks by 2%. There is stimulative value in that.
Most people will spend it.

[stray cat]

11. Tax payer money and loans from other countries just like the rest of the budget

ie including payments for unemployment

[BzaDem]

13. It will come from the deficit, like all stimulus does. That is the POINT of stimulus. It wouldn't be

stimulus if it DIDN'T come from the deficit.

[Statistical]

17. Sad how many people don't get his basic concept.

It helps to simplify it.

Imagine a contry with only a single tax payer.

He pays earns $10,000 and pays $2,000 in taxes. He spends the other $8,000.

Now say you want to increase govt spending. Just raise taxes right? Now taxes are $3,000. So govt spending increased $1,000 however the sole tax payer post tax income drops $1,000 thus his spending drops $1,000.

Agregate spending (private & public sector) is still $10K. Stimulative effect 0%.

Now imagine instead the govt borrows $1K from another entity. Total spending is now $11K ($8K private, $2K public from taxes, $1K public from debt). Aggregate spending increased 10%.

You can't increase aggregate spending without deficit spending. It is impossible.

Now the flip side of that is the govt shouldn't deficit spend durring "good times" it serves no purpose except to send wealth to debt holders.

[Hell Hath No Fury]

19. So they are borrowing from Peter -

to pay Paul?

Not very smart.

[bigtree]

20. unrec - you've been served several times above . . .