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Dec 19, 2011

Republicans Balk At Extending FICA Reduction

That apparent agreement to extend the partial FICA tax holiday for two months is on hold now. Republicans in the House of Representatives have some demands they want to make. Democrats may be unwilling to accede to any of their demands. Stay tuned.

15 comments:

  1. The House Republicans offered to extend it for a year. If Reid had any brains, he would have let the Senate vote on that bill and everyone could potentially be on their way home by now.

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  2. Yeah, with several "poison pills" that no Democrat (and a few Rep Senators) would vote for. Glad Reid is sticking to his guns for once.

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  3. The FICA tax cut is pure politics and a dumb, dumb, dumb idea. Let's just keep digging the hole, right?

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  4. That's right, 8:15. The economy is booming, let's raise taxes and slow it down.

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  5. actually...there is a pretty solid argument that taxes should go UP as the economy goes down. As jobs and expenditures decrease, the percent tax should go up to maintain a steady stream of income for the govt. That's not a popular sentiment, but politicians should be making hard decisions, not popular ones.

    There is almost no evidnece that a continued FICA reduction increases jobs.

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  6. to add to anon at 10:13.

    during depressed economic times, the demand for govt. services/benefits increases, meaning there is a need for more taxes, not less.

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  7. Oh please. Admittedly I am in a tiny minority (CSRS employee), so I don't benefit from the "payroll tax cut". The FICA tax cut is going to be renewed. The question is does anybody really believe this touted "middle class tax cut for hard working Americans" is ever going to be reversed? Won't it be seen as raising taxes on the middle class whenever Congress attempts to restore full FICA withholding? Anybody care to start a pool as to in what year this will transpire?

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  8. ^^ Maybe in a year when the unemployment rate is not at historic highs.

    Not a fan of FICA holidays for policiy reasons (weakens social programs in the long run), but to blame Dems for obstructionism is comical. Please get your news from more than one (cough, FOX) source.

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  9. House Republicans passed a bill that would extend the payroll tax cut for a year (along with unemployment benefits, delaying a cut in Medicare payments to doctors, and supporting Keystone, a project that is supported by large blocks of constituents on the right and left). Senate Democrats refused to consider the bill, instead proposing a mere two month extension of the payroll tax cut(which would be a nightmare to administer this close to the new tax year). Which party is being obstructionist? Hint, it starts with a "D".

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  10. Nice and simple, huh? Here are some of the "other provisions" the previous poster left out: eliminating environmental review of the keystone pipeline, reducing unemployment benefits to 33 weeks, drug-testing unemployment applicants, means testing Medicare for higher income beneficiaries, extending a federal pay freeze and requiring higher health insurance premiums for federal employees and retirees. Yeah, just a simple case of "obstruction". Gee, wonder why this was DOA in the Senate?

    Nice try.

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  11. House bill extended payroll tax and unemployment benefits for a year and postponed the reduction of Medicare/Medicaid fees to doctors for another year. The Senate Democrats bill extended these things for two months. Which is the better deal for the public? Hint -- it is the bill that resolves these issues for a year.

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  12. Hint: It's the one that extends unemployment benefits 73 weeks, not 33, doesn't gut air-pollution enforcement, nor raise Medicare premiums. Back to Faux News or the RNC, please.

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  13. Comparison of the two bills from the Washington Post:

    http://www.washingtonpost.com/national/comparison-of-house-senate-payroll-tax-cut-bills/2011/12/19/gIQA9QSw3O_story.html

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  14. the bill that's "better for the public" is the one that could have been passed without further delay. given that the senate, including many senate republicans, already reached a compromise, the house republicans are being outrageously irresponsible.

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  15. Republicans are MAD because Obama is STYLIN' ON THEM...

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