By Ron Scherer, Staff writer / December 18, 2012
No matter how the 'fiscal cliff' talks end, (click here) federal taxes of working Americans appear likely to rise after Jan. 1. That's because the Obama White House isn't pushing to extend the payroll tax cut....
The last time the Payroll Tax Cut was passed, the Republicans stated: "A tax cut doesn't have to be funded." With that they intended and passed an attack against Social Security and it's solvency.
The Payroll Tax Cut was an uptick to business as well. Both the business contribution and individual contribution was cut to benefit the economy. So, while business was considered important in the dynamic to recover the economy the working people got a break to their income to encourage spending. I think it is something like $1000 per year for the Middle Class of the country.
I don't see anything wrong with ending the Payroll Tax Cut. If the Republicans are going to attack the solvency of Social Security by not funding it, then the nation is better off paying the tax and having the business sector pay as well.
So, it looks as though regardless of the New Years Eve deadline to tax cuts, this one will end anyway, regardless of Congress's ability or inability to protect the Middle Class. The Middle Class can clearly state they are contributing to the stability of the Social Security Fund with this RETURN to normalized tax rates. This expiration of the Payroll Tax Cut simply defines the fact SSI is not the same as Federal Income Tax and the USA Treasury. The BUDGET and the National Deficit has nothing to do with the Payroll Tax Cut
Not directly.
The Payroll Tax Cut was viewed by President Obama as a mechanism to put monies in the hands of Americans SO LONG AS it was funded. President Obama never wanted to cause hardship to the SSI fund. He wanted to fund the tax cut only as a mechanism to put monies into the hands of those best acting to improve the USA economy (increased demand for products). When the Republicans didn't fund it the last time it was renewed, they were seeking to do damage to the SSI fund. I am sure they would term it, "Teach the nation a lesson." Of course, President Obama would not reinstate the request to Congress. Why would he? SSI is not the problem, the Income Tax burden of the Middle Class is the problem and the lack of appropriate tax on the wealthy is the problem.
The Bush Tax Cuts are the problem. The solvency of our USA Treasury is the problem.
Just because the Republicans always attack SSI as if it has some kind of relationship to 'The Real Problems' of the country, doesn't mean it relevant to the problem at hand. The attack on SSI by the Republicans is ideology. It has no brevity on our National Budget or the deficit. SSI is a completely separate issue.
I say again, The Payroll Tax Cut was a MECHANISM to improved spending in the country (increase consumer demand; put people back to work through pressures from within the economy itself) so long as it was FUNDED. When the Republicans saw the opportunity to damage the SSI fund in this APPLIED mechanism by President Obama; the President moved off the opportunity to help the economy through this method. It was a METHOD, not a cure, but it had to be funded.
So, the idea the Republicans are against raising taxes on Americans and their private sector is nonsense. They are willing to do at least this much by not funding the mechanism to improve the economy.
I believe this is fine. The economy is rebounding. It was a V-shaped recession albeit "The Great Recession" but never once returned to a recessive process in the American economy. We are doing okay. This is a matter of continuing the Social Security Insurance program. It is a return to NORMALCY. I think it is a good sign.
One more time, Americans have to increase their incomes. They have to demand the pay rates they deserve and work hard for. If unions can insure that will happen while understanding the need of the company to survive and deliver REASONABLE stock market investment to stockholders (in the case of Wall Street); then unions need to be pushing a better quality of life and a STABLE and vital economy as a benefit to that quality of life.
Think a minute what President Obama's administration has been doing to recover the USA economy. What did they and what are they doing exactly? They are increasing the MONIES in the hands of the Middle Class. If it also increased monies in the private sector because it was the only way Republicans would go along with it, so be it. If the increased income to business (As in the Payroll Tax Cut) improved the economic vitality, then fine. But, the sincere purpose of the President's Administration has been to empower the Middle to KEEP THEIR HOMES, increase their disposable income and increase demand for products and services in the USA economy that would ultimately increase the number of jobs.
It was a completely NATURAL PROCESS, the President was applying. The idea was to return to normalcy eventually anyway in whatever the new reality was of the new economy.
Let's say all tax decreases stops. Let's say we move past New Year's Eve and the tax incentives pass. The Middle Class is now paying more taxes and their 'take home' pay decreases. What has to happen to compensate that loss? They need more income. They need to demand more pay from their employers or in the case of independent business owners that have a Middle Class income from their business, they need to increase their product and/or their prices. Their product demand will occur with increased demand due to more income to Middle Class citizens. So, the independent business person has a real stake in seeing better pay for Americans. They also need to resist to some extent increasing their prices to prevent inflation.
It is math.
Now, will the American economy disappear because the tax cuts go up? No. We have had four years of recovery and while there will be some loss of economic vitality when the tax increases occur, much of the revitalized economy will remain.
The return to higher tax rates will be like a 'bungy cord' and not a cliff if Americans seek pay increases. In one year from now, on New Year's Eve 2013 every employee should have received at least one pay increase. Do you follow now?
It is exponential growth. For each person employed, increased income results in more demand for products, increases quality of life will result and that alone will build on itself.
We can do this. The unions are capable of leading to this new standard of CIVIC involvement in the USA economy. It will happen and there should be no fear of it.
As the income of Americans goes up, the taxes paid to the USA Treasury will increase and the National Debt and Deficit will come down.
It will hurt initially, but, Americans have to resolve they are WORTH THE FIGHT.
No matter how the 'fiscal cliff' talks end, (click here) federal taxes of working Americans appear likely to rise after Jan. 1. That's because the Obama White House isn't pushing to extend the payroll tax cut....
The last time the Payroll Tax Cut was passed, the Republicans stated: "A tax cut doesn't have to be funded." With that they intended and passed an attack against Social Security and it's solvency.
The Payroll Tax Cut was an uptick to business as well. Both the business contribution and individual contribution was cut to benefit the economy. So, while business was considered important in the dynamic to recover the economy the working people got a break to their income to encourage spending. I think it is something like $1000 per year for the Middle Class of the country.
I don't see anything wrong with ending the Payroll Tax Cut. If the Republicans are going to attack the solvency of Social Security by not funding it, then the nation is better off paying the tax and having the business sector pay as well.
So, it looks as though regardless of the New Years Eve deadline to tax cuts, this one will end anyway, regardless of Congress's ability or inability to protect the Middle Class. The Middle Class can clearly state they are contributing to the stability of the Social Security Fund with this RETURN to normalized tax rates. This expiration of the Payroll Tax Cut simply defines the fact SSI is not the same as Federal Income Tax and the USA Treasury. The BUDGET and the National Deficit has nothing to do with the Payroll Tax Cut
Not directly.
The Payroll Tax Cut was viewed by President Obama as a mechanism to put monies in the hands of Americans SO LONG AS it was funded. President Obama never wanted to cause hardship to the SSI fund. He wanted to fund the tax cut only as a mechanism to put monies into the hands of those best acting to improve the USA economy (increased demand for products). When the Republicans didn't fund it the last time it was renewed, they were seeking to do damage to the SSI fund. I am sure they would term it, "Teach the nation a lesson." Of course, President Obama would not reinstate the request to Congress. Why would he? SSI is not the problem, the Income Tax burden of the Middle Class is the problem and the lack of appropriate tax on the wealthy is the problem.
The Bush Tax Cuts are the problem. The solvency of our USA Treasury is the problem.
Just because the Republicans always attack SSI as if it has some kind of relationship to 'The Real Problems' of the country, doesn't mean it relevant to the problem at hand. The attack on SSI by the Republicans is ideology. It has no brevity on our National Budget or the deficit. SSI is a completely separate issue.
I say again, The Payroll Tax Cut was a MECHANISM to improved spending in the country (increase consumer demand; put people back to work through pressures from within the economy itself) so long as it was FUNDED. When the Republicans saw the opportunity to damage the SSI fund in this APPLIED mechanism by President Obama; the President moved off the opportunity to help the economy through this method. It was a METHOD, not a cure, but it had to be funded.
So, the idea the Republicans are against raising taxes on Americans and their private sector is nonsense. They are willing to do at least this much by not funding the mechanism to improve the economy.
I believe this is fine. The economy is rebounding. It was a V-shaped recession albeit "The Great Recession" but never once returned to a recessive process in the American economy. We are doing okay. This is a matter of continuing the Social Security Insurance program. It is a return to NORMALCY. I think it is a good sign.
One more time, Americans have to increase their incomes. They have to demand the pay rates they deserve and work hard for. If unions can insure that will happen while understanding the need of the company to survive and deliver REASONABLE stock market investment to stockholders (in the case of Wall Street); then unions need to be pushing a better quality of life and a STABLE and vital economy as a benefit to that quality of life.
Think a minute what President Obama's administration has been doing to recover the USA economy. What did they and what are they doing exactly? They are increasing the MONIES in the hands of the Middle Class. If it also increased monies in the private sector because it was the only way Republicans would go along with it, so be it. If the increased income to business (As in the Payroll Tax Cut) improved the economic vitality, then fine. But, the sincere purpose of the President's Administration has been to empower the Middle to KEEP THEIR HOMES, increase their disposable income and increase demand for products and services in the USA economy that would ultimately increase the number of jobs.
It was a completely NATURAL PROCESS, the President was applying. The idea was to return to normalcy eventually anyway in whatever the new reality was of the new economy.
Let's say all tax decreases stops. Let's say we move past New Year's Eve and the tax incentives pass. The Middle Class is now paying more taxes and their 'take home' pay decreases. What has to happen to compensate that loss? They need more income. They need to demand more pay from their employers or in the case of independent business owners that have a Middle Class income from their business, they need to increase their product and/or their prices. Their product demand will occur with increased demand due to more income to Middle Class citizens. So, the independent business person has a real stake in seeing better pay for Americans. They also need to resist to some extent increasing their prices to prevent inflation.
It is math.
Now, will the American economy disappear because the tax cuts go up? No. We have had four years of recovery and while there will be some loss of economic vitality when the tax increases occur, much of the revitalized economy will remain.
The return to higher tax rates will be like a 'bungy cord' and not a cliff if Americans seek pay increases. In one year from now, on New Year's Eve 2013 every employee should have received at least one pay increase. Do you follow now?
It is exponential growth. For each person employed, increased income results in more demand for products, increases quality of life will result and that alone will build on itself.
We can do this. The unions are capable of leading to this new standard of CIVIC involvement in the USA economy. It will happen and there should be no fear of it.
As the income of Americans goes up, the taxes paid to the USA Treasury will increase and the National Debt and Deficit will come down.
It will hurt initially, but, Americans have to resolve they are WORTH THE FIGHT.
