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White House Floats Gun Control Proposals

437
lawhawk1/07/2013 7:54:13 am PST

re: #425 Vicious Babushka

What part of temporary tax break do these people not understand? Oh wait, they figured/expected that once the temporary break was enacted, it was only a matter of time before it was made permanent.

They were right with the Bush tax cuts from 2001/2003/2009. Obama made them permanent for all but those making over $400/450k. That’s why it’s so maddening when I hear the GOP complain that they lost the tax cut war. If they lost, it was Pyrrhic. They wont admit it except in the deep corners of their caucus, but they got most of what they were looking for - cuts for most everyone except the rich and the rates are now permanently lower (or back to the 39.6% top tax bracket.

The payroll tax is a different creature since it is to fund Social Security. The reduction in payroll tax undermines the long term solvency of the program. That situation could be fixed by any of the following: 1) restore the rate to the prior level (going from 4.2% to 6.2% - the route taken); 2) permanently reduce benefits for those retiring down the line to maintain the same level of solvency; 3) raise the cap from ~$110k to unlimited - exposing income above $110k to payroll tax obligations, rather than to everyone who makes under $110.

Method 1 was the chosen method, and the one that Congress signed on to when it initially approved the bill into law. It was always meant to be temporary as a means to put more money into the economy. Method 2 would have negative outcomes for both parties politically since reducing benefits would hit Seniors hard down the line.

Method 3 would hit high income earners harder than everyone else, and could be coupled a partial rate reduction across the board (3a/3b). For political expediency, (1) was chosen.

Now, we’re going to watch the GOPers go back and start working on cutting benefits for these programs, and trying to pin the blame on the President - even citing the lost revenue and reduced solvency of the programs (in part due to the temporary payroll tax break) without the slightest hint of irony.