E-mail updates
Follow on Twitter
Subscribe to RSS“Top lawmakers from both parties are proposing to offset the cost of extending a U.S. payroll tax cut, establishing markers for negotiations over how to prevent the break from expiring Dec. 31,” Bloomberg reports. Senate Minority Leader Mitch McConnell hasn’t said how Republicans plan to cover the forgone revenue from extending the 2 percentage point reduction in employees’ portion of the Social Security tax. Senator Jon Kyl, the second-ranking Republican, said details would be available by today. Democrats have proposed extending and expanding the tax break. The Democrats’ $265 billion proposal would be offset by a 3.25 percent surtax on annual income exceeding $1 million, and a test vote is planned for this week on the proposal.”
The Hill frames it this way: “Senate Republicans will offer a new proposal to extend the payroll tax holiday as they battle with Democrats for supremacy on taxes. Republicans earlier this year dismissed an extension of the cut as a ‘sugar high’ that would do little to create jobs, but Senate Minority Leader Mitch McConnell (R-Ky.) announced a shift in strategy on Tuesday, saying he would offer the GOP offset for extending the tax holiday.”
“With the super committee's failure last week, industrious lawmakers are grasping yet again at the opportunity to reach a sweeping deficit reduction deal — but they face the same obstacles that have crushed every group that's tried,” Roll Call reports. “Still seeing an opportunity in the bleakest of legislative outlooks, the bipartisan ‘gang of six’ [which is now eight] met for dinner Monday night in the Capitol office suite of Senate Majority Whip Dick Durbin (D-Ill.) to discuss a post-super-committee Congress.”
By the way, still on Congress’ pre-Christmas to-do list, per Roll Call: “extending the payroll tax cut, extending unemployment insurance benefits for the long-term jobless, passing a raft of expiring tax provisions known as extenders, patching the alternative minimum tax, acting to prevent a cut in payments to doctors who treat Medicare patients and passing a spending package made up of the remaining nine annual appropriations bills.”
Norm Ornstein on Barney Frank’s departure: “It is difficult to stand out as one of 435 of anything — and that is even more true in a cacophonous place such as the House, which is filled with big personalities. Some stand out just by saying outrageous or over-the-line things, which is now, sadly, a surefire way to raise big bucks and even become a presidential candidate. But few truly stand out, becoming forces inside Congress and outside because of their ideas and their legislative talents. For decades, Frank has been in that small category, and his departure from the House will leave a big void.”
And he places the blame on Republicans for the failure of the Super Committee: “I believe the major reason was the breakdown on taxes — the inability of the Republicans on the panel to commit to anything in the vicinity of the area of the neighborhood of $1 trillion in revenues, even for a grand bargain.”
Leave a Comment:
Uh oh.
Looks like the ignorant ideology of the Tea Nuts is losing it's appeal....
At some point, your party will begin to suffer from the lack of facts, analysis and experts supporting the GOP's ecomonic fantasies.
Also, the obvious hypocrisy in repeatedly supporting tax cuts for the wealthy without paying for them, and then insisting relief to the rest of the country be paid for, doesn't help.
(McConnell shows he is smarter then the average wingnut.)
But will the few remaining sane people in the GOP be able to withstand the wrath of Norquist?
Repulicants, no they can't. Or they are tired of him and are leaving government service. The moderate, willing to compromise leaders are leaving. The gridlock and ideology is too much for them.
I would like to say the pendulum will swing toward more moderate lawmakers, but Fox Noise will continue to trumpet their foul propaganda for people who refuse to look to different sources for the real story. If we can force fox to stop lying and fabricating, the nation will heal and more sensible lawmakers will come to Congress.
I see the BIG LIE from democrats continues......it's the rich and the republicans that are responsible for the growing income inequality.
Guess what? More money has been "transfered" by the democrat social security and medicare programs than the bush tax cut and reagan tax cuts combined!
Billions of dollars are taken from young wage earners who may not pay much in terms of income tax but certainly have money taken from them to pay retirement and medical care for older, affluent americans. We need to means test.
That is why we need to reform entitlements, social security, and medicare and vote out the democrats that want to keep us on this ruinous path of economic destruction!
The PUBs will be hard pressed to not go along with the payroll tax cut. They have bastardized and/or obstructed everything else the American People want. How can anyone think they have our best interest at heart?
Rob social security and medicare are NOT entitlements - you need to understand that simple fact before you post rhetoric that makes no sense.
Rob, the lie is that the rich and the republicans are NOT responsible for growing income inequality ever since the days of St. Ronnie.
Make the cut in taxes. Those on the receiving end of the cut WILL spend the money. Increase taxes by upping the rate on the wealthiest as proposed. The money that tax cut recipients spend WILL wind up in the pockets of the wealthy. It ALWAYS does.
Trickle DOWN is a BS Republican talking point. Trickle UP is an economic reality. Republicans are too stupid to understand that fact. Democrats are too stupid to present their case.
I agree completely. Dems can compromise by making the surcharge expire rather than permanent, which is what the gop has been whining about
Its not paid for so it takes money from the Social Securty fund !
But will the few remaining sane people in the GOP be able to withstand the wrath of Norquist?
Though it is true that the extension of the payroll tax cuts would help many Americans who would otherwise see their taxes go up, this new expansion of the temporary tax cuts will do little to help the overall economy.
Doug Elmendorf, the Director of the Congressional Budget Office has said that the temporary increase in take-home pay would be saved rather than spent (eng.am/u9aS4F).
There is no reason to believe that this measure will increase hiring. And, there is less reason to believe that this bill will be able to pass through our gridlocked Congress with these new permanent tax increases.
Not to mention that this latest version of the payroll tax holiday will add $250 billion to the deficit, according to the Tax Policy Center (eng.am/t4cD82).
Scott.
Elmendorf also said that the payroll tax cut would increase disposable income, increase production, and increase employment.
http://cboblog.cbo.gov/
http://www.cbo.gov/doc.cfm?index=12413
Not if it is payed for with a sur tax on the very wealthy, an option that would still spur growth, but not add to the debt, for you are taking capital from an area where it spurs very little growth, to one that has a greater effect.
american politics needs to stop being about either reps or dems. Its well accepted in such political sense, that reps are entirely diiferent than dems. One president holds office, then another of an opposing party, throws lawmaking into indecision and inactivity. We need two governments, and to split up along these divergent governmental attitudes. herdmycattle.com/split-up-america-into-two-countries/
Here are some stats for you:
Average cut to 1% from Bush Tax Cuts for 2011: $66,834
Average salary of the 99% in 2011: $58,506
1979 - 2005 = Increase in Income
The 1% - PLUS 400%
The 99% - PLUS 21%
AND why do they want to reduce Capital Gains tax???? Because it reduces their tax to about 15%..................LESS than what the middle class pays.
Hellewwwwwwwwww!