Tuesday, February 21, 2012

The Problem With the Payroll Tax Cut Extension

The House voted last Friday to extend the payroll tax cut. But in doing so, they added $100 billion in new deficits to the budget, and putting Social Security further in the hole. The reductions in payroll taxes are dollars that help fund Social Security. The actions of Congress last week are an irresponsible effort to appease the public by giving them a “tax cut” that will be paid for by writing another $100 billion in IOU’s to Social Security.

A significant number of Republicans and Democrats were disgusted that this tax cut was putting the country deeper in debt to the Social security Trust Fund.

As reported by Fox News, "I cannot and I will not support legislation that extends the payroll tax holiday without paying for it," said Rep. Phil Gingrey, R-Ga. "This will add $100 billion to the deficit and it will create an even greater shortfall within the Social Security trust fund that already has over $100 billion shortfall just in the last two years." Longtime Democratic Sen. Tom Harkin of Iowa also issued a scathing indictment of the president, for permitting a bill that does not offset the cost of the payroll tax cut. "I'm dismayed that Democrats…have proposed this and are willing to sign off on a deal that could begin the unraveling of Social Security," Harkin said on the Senate floor Thursday.

There are other ways to keep this tax cut in place without adding to the debt: cut programs. It is time to get serious about cutting government. Congress should consider elimination of the Department of Education, saving $95 billion. Eliminating the Department of Energy would save $21 billion, while eliminating the Department of Housing and Urban Development would save $53 billion. These are the kinds of reductions that are needed to effectively reduce government and put decisions back in the hands of the states and the individual.

It is time for Congress to say “Stop” to the unbridled spending in Washington. Who voted for this bill? Check here.

1 comment:

Payroll Solutions said...

Cook & Morehart has been the Town of Benton's CPA for years and has never said anything about the Town violating state overtime law that they have been violating for years. Are they reputable or the with the good ol boys.