Comments on: Republicans paint themselves into a tax-cut corner http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/ Sat, 23 Mar 2013 13:49:31 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: gnostic8 http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-729 Wed, 07 Dec 2011 23:00:09 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-729 @FredFlintstone – you make a very insightful point. This is a risky trade-off for Obama that might come back to bite us. I have to ask myself, though, ‘what’s the alternative?’. Unfortunately, he has to strike while the iron is hot. I can guarantee the Reps. won’t be better stewards of SS. A dirty trick?…perhaps, but a pragmatic one.

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By: breezinthru http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-728 Wed, 07 Dec 2011 02:45:41 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-728 15 Trillion USD in the hole and everybody wants a tax cut. We have to stop digging the hole deeper and somebody has to start filling it back in.

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By: FredFlintstone http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-727 Wed, 07 Dec 2011 01:33:29 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-727 The sad part? Obama is playing with Social Security, pushing the program more and more into the general budget where it will be subject to all the worst kinds of political jockeying it should be (and mostly is, and has been for decades) sheltered from. It’s beyond cynical. It’s evil to play with a program that millions of poor Americans rely on and which they paid into for all their working lives.

Even more obnoxious is that “fixing” Social Security would be very easy, and you might even permanently cut the payroll tax. How? Apply the Social Security tax to all income, regardless of source. And make businesses that hire contractors also pay whatever share they pay employees. Social Security would be truly independent, could pay out at a higher rate (more like 70% to 80% of average lifetime income), and might even eliminate the need for private company or government sponsored pension plans (unless people want to save on their own, which always is a good thing).

In short, this is the worst sort of politics and should be roundly condemned. Not praised.

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By: AnastasiaG http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-726 Tue, 06 Dec 2011 22:07:49 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-726 A decrease in the social security tax does not favor the uber-wealthy, as the social security payroll tax is only levied on the first 107k of annual income. The reason those at the higher end of the middle to upper middle class spectrum are receiving a higher percentage of the savings, is that as the tax is flat up to the cutoff they pay in a higher portion of the tax. Versus the Making Work pay was a flat credit, which would be worth more to those with lower income, i.e. $400 if you make 10,000 or 100,000.

If this isn’t a sign to even the upper middle class American’s that the Republicans only care about tax breaks for the uber-wealthy, I don’t know what will. Consulting IRS data for 2009 the number of single returns with income under 100k accounts for 95% of single returns.

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By: bruce1963 http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-725 Tue, 06 Dec 2011 21:32:24 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-725 I think you’re playing games with numbers to make Obama’s plan sound regressive when it’s really not.

Payroll taxes are the only Federal tax paid by the lowest income workers, so cutting 2 percentage points out of 7.5 is close to a 30% reduction in their taxes. For my wife and I, that number is closer to 10%. For someone with a seven figured income who only pays social security taxes on the first $106K, that percentage becomes much smaller.

See, I can play, too. :)

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By: spameroo http://blogs.reuters.com/david-cay-johnston/2011/12/06/republicans-paint-themselves-into-a-tax-cut-corner/#comment-724 Tue, 06 Dec 2011 18:06:35 +0000 http://blogs.reuters.com/david-cay-johnston/?p=219#comment-724 I’m all for exposing the brazen hypocrisy of the current Republican Party, but aren’t you also saying that Obama is championing a tax cut that favors the wealthy at the expense of the middle and lower class?

I get that he maneuvered the GOP and Norquist into revealing their true intentions (not concerned with cutting taxes on principle, using ideological rhetoric to obfuscate their objective of shifting the tax burden further off themselves and their rich pals). But if I’m understanding your article correctly, Obama is doing the exact same thing in the process.

Why wouldn’t the Fox News brigade spin this as “Obama tax cut would raise taxes on 1/3 of American workers” or “Under Obama tax cut, top 5% would get 16% of the savings”? Trying to out-hypocrite the most pathologically hypocritical party in history seems doomed to fail… but even if it IS a brilliant political play, why the hell should I care when it means I’m paying MORE taxes than last year?

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