The C Word and the Payroll Tax Cut Extension

Republicans, Democrats Seal Rare Deal on Taxes

No, not that C word. COMPROMISE. Many Republicans, mainly those in the Tea Party wing, are severely allergic to that word. Yet, they did it anyway! They were able to work with Democrats to get the payroll tax cut extended to the end of the year. YAY!

This is great news for us 160 million workers and for the economy:

Passage would end a battle that has raged since last year over legislation that some economists say is vital to keeping the U.S. recovery on track by injecting up to $130 billion into the economy through consumer spending.

$130 billion dollars. When we working schmucks have extra in the paycheck, we tend to spend it. It could be on anything – from necessities to indulgences. Groceries = stimulates the economy. Dinner out = stimulates the economy. Our consumption (or lack of) has a huge effect on this nation’s fiscal health. You can feel it whenever a Consumer Confidence Index® report comes out. The markets skyrocket or tank based on it. Extending that payroll tax cut will keep up that spending, allowing the economy to keep recovering.

Message to House Republicans: Allow me to be among the first to thank you for compromising. This is how things get done. I know that word gives many of you hives. And actually doing it makes you go into anaphylactic shock. Even if you did it out of self-interest because many of you are up for reelection, I thank you. Now, take this EpiPen®. You deserve it.


12 responses to “The C Word and the Payroll Tax Cut Extension

  • lbwoodgate

    Obviously they have seen their poll numbers lately, with Republicans lagging behind the Democrats.

    I seem to remember hearing something when they passed this extension that they did not find a way to pay for it. They still refuse to put a small surtax on the wealthiest to cover this shortfall that will impact important benefits like unemployment, social security and Medicare/Medicaid

  • John Barron

    You do realize the payroll tax directly funds the social security fund, right? This tax cut stops putting money into social security while it continues to pay out. Do you think this is a smart place to make a tax cut? Why not on the income side instead of the SS funding side?

    • Sedate Me

      And where does the money from a tax cut come from? It comes out of an already bankrupt treasury, which fills itself by borrowing, with interest, from places like China.

      It’s a lot better to tap into social security than ring up the credit card on tax cuts that will undoubtedly favour the rich and will probably never be undone. Everyone knows the payroll tax holiday will expire a lot faster than Bush era tax cuts ever will.

      Forget that wuss Mitt Romney’s betting only what was in his pocket that night, ($10,000) I’d be willing to bet my entire annual income on it.

    • Spinny Liberal

      I do – we’re paying for our parents’ as they paid for theirs when they worked. Since the economy is in the toilet now, we’re going to need that extension to stimulate it. It isn’t for forever though.

  • aFrankAngle

    And why don’t we hear cries of “Socialism” against Republicans from the Republican segment?

  • Sedate Me

    I’m a firm believer in Trickle-up economics, but if I were you guys, I’d pay off as much debt as I could with that money.

    And if I didn’t have any debts, I’d put the cash is some rock solid bond, GIC, etc. Because the payroll tax holiday is just that, a holiday. Once the holiday is over, the government will want all the money they let you hold onto for the year.

    Use it very wisely. It might be the last money you ever see.

  • lobotero

    Revenue is always needed and any slash in it will be disastrous……if you believe that we voters have an obligation to the country then all Americans have the obligation and one of those is paying taxes….like it or not.

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