Monday, December 6, 2010

Payroll Tax Cuts!!!

Aides to President Barack Obama are proposing a one-year reduction in the payroll tax as part of negotiations with Congress on a broader package to stave off income-tax increases due to take effect next year, reports WSJ.

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 expire
Tax 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.


  1. And it's interesting that they want to apply the cut to the worker's side and not the employer's side.

    If you want job growth, one should cut taxes on the business. Not a shocker considering this Administration's track record

  2. More covert borrowing from the SS "trust fund", it looks like.