Under the White House plan, the Social Security tax paid by workers would drop temporarily by 2 percentage points, to 4.2% from 6.2%.
Reports WSJ:
The proposal has not won the approval of congressional Democrats or Republicans. Its emergence in the broader tax negotiations is a sign that the White House is trying to break the logjam on those talks before the end of the year, when tax cuts signed into law by former President George W. Bush are due to expireTax cuts are good, but you have to be careful that a tax "switch" won't come down the road, where some other taxes are hiked.
Also, taxes cut need to be accompanied with budget cuts, otherwise, Ben Bernanke is going to be announcing QE4, 5 and 6 in short order.
And it's interesting that they want to apply the cut to the worker's side and not the employer's side.
ReplyDeleteIf you want job growth, one should cut taxes on the business. Not a shocker considering this Administration's track record
More covert borrowing from the SS "trust fund", it looks like.
ReplyDeleteGood for gold.
ReplyDelete