The centerpiece of the bill [proposed by the President], known as the American Jobs Act, is an extension and expansion of the cut in payroll taxes [the FICA tax that funds Social Security payments], worth $240 billion, under which the tax paid by employees would be cut in half through 2012. Smaller businesses would also get a cut in their payroll taxes, as well as a tax holiday for hiring new employees.
Sep 9, 2011
FICA Tax Cuts Are Centerpiece Of Obama's Plan
From a New York Times report on the President's speech to Congress last night:
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10 comments:
Does the social security administration send out tax income reporting documents?
Or
Does SSA report beneficiary income to the irs,similar to the private sector?
A trillion dollars of spending didn't work, so lets do it again.
Just a month ago he pledged to cut spending, so already he wants to blow more money we don't have.
This clown has to go in 2012.
His Wall St. controllers are setting up a real crisis in SS and medicare funding much sooner than 2030 in order to kill both programs. Stave the beast at work and Obama is leading the charge.
Anon at 11:17.
Withholding the payroll taxes certainly makes tapping the trust fund more likely.
However, making up the shortfall with general revenues is the same way the trust fund is liquidated.
It's not like the trust fund is filled with gold ingots, just waiting to be liquidated.
The trust fund is merely an accounting mechanism which shows how much money can be withdrawn from the Treasury (general revenues) without an appropriation. This pay-as-you-go financing from general revenues is the same way we pay for all government expenses, AS IF THE TRUST FUND DID NOT EXIST.
Don Levit
http://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009
American Recovery and Reinvestment Act of 2009
In the primary justification for the stimulus package, the Obama administration and Democratic proponents presented a graph in January 2009 showing the projected unemployment rate with and without the ARRA. The graph showed that if ARRA was not enacted the unemployment rate would exceed 9%; but if ARRA was enacted it would never exceed 8%. After ARRA became law, the actual unemployment rate exceeded 8% in February 2009, exceeded 9% in May 2009, and exceeded 10% in October 2009. The actual unemployment rate was 9.2% in June 2011 when it was projected to be below 7% with the ARRA.
As Yogi Berra said "It's deja vu all over again."
"A trillion dollars of spending didn't work, so lets do it again.
Just a month ago he pledged to cut spending, so already he wants to blow more money we don't have.
This clown has to go in 2012."
Anon 9:52, this is a tax cut, which would have the same effect as anything else the republicans wanted -- there would be less revenue to pay for stuff. just as obamacare was essentially republican health care in the 90s, it seems some people will look for any excuse to blame obama for something out of his and everyone else's control.
Mr. Hall: I'm waiting for your "sky is falling" commentary regarding these FICA cuts. Oh that's right, your Democrat in charge is doing it. Never mind.
SSA going broke, lets cut FICA. Genius. Can't blame the (R) this time.
As a lot of progessives have argued, the first stimulus was inadequate. And this one is two years to late, but better than nothing. For those that say the first stimulus didn't work what is that based on? Raising a negative GDP seems like an improvement for an economy in free fall.
http://campaign2012.washingtonexaminer.com/article/barone-obama-buys-drinks-other-guys-pay
The effect of Obama's plan on Social Security:
Remember when Obama once solemnly promised not to touch SS? But for 2011, his tax cut deal on SS payroll tax cuts with the GOP allowed a loss of $140 Billion to the SS Trust Fund, and now this: payroll cuts for both employees and employers that come to a $240 Billion loss to the Fund (2012). That comes to a $380 Billion loss! That is almost one-half of the SS benefits for 2011! What a double-crossing lying hypocrite Obama is. It's akin to prescribing toe amputation in order that the patient may walk better.
For the real facts on SS, read "PROPOSED LEGISLATION THAT WOULD PRESERVE SOCIAL SECURITY INTO PERPETUITY"
by clicking on:
http://www.absentlinks.com/uploads/6/6/4/2/6642350/july_2011_with_tables_social_security_exposing_the_destructive_fixes_and_showing_how_to_preserve_it_intp_perpetuity.pdf
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