The reductions in the FICA tax that have been in effect since the beginning of this year have been extended for another two months. The FICA tax goes into Social Security's trust funds. The Treasury is making up the difference for the Social Security trust funds.
"The Treasury is making up the difference for the Social Security trust funds."
ReplyDeleteThis will only make people more resentful of funding Social Security. Also what good does this do CSRS employees, we have our pay frozen and everyone else benefits from this continuation of the payroll tax reduction.
The Treasury is making up the difference for the shortfall of cash outgo over cash income.
ReplyDeleteFrom a financial dynamic, there is no difference.
Don Levit
"The Treasury is making up the difference" means that the Treasury is borrowing more money from China, or issuing debt-instruments to the Federal Reserve, which is de-facto equivalent to printing money.
ReplyDeleteNothing to see here folks, move along, move along..er, wait a minute. Did you say we're borrowing MORE money from China so we can pay less in FICA for a little while? When this Govt goes bust we will deserve everything we get.. the stupidity continues..
ReplyDeleteUnfortunately like Lucy pulling the football away from Charlie Brown, there is no such thing as a "deal" with the House until they pass a bill. Boehner can spin it all he wants, but the truth is he has no control over his caucus. He can't negotiate with the Senate because he has no authority to negotiate on behalf of his membership.
ReplyDelete