Social Security advocates fear payroll tax cut

Social Security advocates fear payroll tax cut
WASHINGTON— President Barack Obama’s plan to cut Payroll taxes for a year would provide big savings for many workers but makes Social Security advocates nervous that it could jeopardize the Retirement program’s finances. The plan is part of a package of Tax Cuts and extended Unemployment Benefits that Obama negotiated with Senate Republican leaders. It would cut workers’ share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages woul...

Social Security Advocates Fear Payroll Tax Cut
Like this Story? Share it: (AP) President Barack Obama's plan to cut Payroll taxes for a year would provide big savings for many workers but makes Social Security advocates nervous that it could jeopardize the Retirement program's finances. The plan is part of a package of Tax Cuts and extended Unemployment Benefits that Mr. Obama negotiated with Senate Republican leaders. It would cut workers' share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages would ge...

Payroll tax cut worries Social Security advocates (AP)
WASHINGTON – President Barack Obama's plan to cut Payroll taxes for a year would provide big savings for many workers, but makes Social Security advocates nervous that it could jeopardize the Retirement program's finances. The plan is part of a package of Tax Cuts and extended Unemployment Benefits that Obama negotiated with Senate Republican leaders. It would cut workers' share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages would get a $1,000 tax ...

Social Security advocates fear payroll tax cut (AP)
WASHINGTON – President Barack Obama's plan to cut Payroll taxes for a year would provide big savings for many workers but makes Social Security advocates nervous that it could jeopardize the Retirement program's finances. The plan is part of a package of Tax Cuts and extended Unemployment Benefits that Obama negotiated with Senate Republican leaders. It would cut workers' share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages would get a $1,000 tax c...

Robert Kuttner: Social Security: The Coming Cave-in
If you think the Democratic Base is mad at Obama now for making a craven deal with Republicans that continues Tax Breaks for the Richest Americans and adds new ones for their heirs through a big cut in the Estate Tax, just wait a few weeks until Obama caves on Social Security. How will this occur? The Deficit commission appointed by the President has called for an increase in the Retirement Age, as well as other cuts in benefits over time. And the deal that Obama made with the Republicans jus...

Harkin, Dean raise doubts on Social Security tax holiday; AARP silent
Sen. Tom Harkin (D-Iowa) and former Gov. Howard Dean (D-Vt.) are both raising doubts about an aspect of President Barack Obama's tax-cut deal that has not received much criticism: a one-year, two-percentage point cut in employees' share of the Social Security Payroll Tax. By contrast, a group which usually mounts staunch opposition to changes in the Social Security funding mechanism, the AARP, has remained silent about the proposed Payroll tax holiday. "That’s another thing that I rea...

Why Do Deficit Hawks Hate Social Security
Last week, Social Security advocates learned something they had long suspected. Arguments for cutting Social Security aren't really about economics or the Deficit. They're all about waging war on Social Services. In short, some very prominent policymakers are out to dismantle Social Security on ideological grounds. The most recent example of this view comes from Alan Simpson, a former Republican Senator from Wyoming who now serves as co-Chair of President Barack Obama's Federal Debt Commission. ...

Come Saturday Morning: Reasons to Fight the Obama/GOP Poor Tax
Why should we be melting down our phones telling our Senators and Congresscritters “Hell NO!” on this turkey? Let us count the reasons: - The poorer you are, the more of your disposable income you’re prone to spend. The richer you are, the more likely you are to sock it away somewhere. This is why a stimulus that mainly benefits the poor is far better for The Economy as a whole than one that mainly benefits the rich. Yet the Tax Cut framework actually forces poor people...

Why didnt Barry just give Clinton the finger?
Anyhow, Barry bails at 9:30. Stay classy, Barry! Stay classy! Then there's this, ZOMG: [CLINTON:] First of all, I feel awkward being here and now you’re gonna leave me all by myself. [CLINTON:] I don't want to make her mad. Please go. You're in good hands. It's nice to see the Big Dog doing the Big Dog thing -- he's so smart, and such a great communicator -- but even Clinton can't buff this turd. It's not a good bill. Selling the plan on the basis of the Unemployment Insurance extension ...

Bill Clinton's rebuke to Democrats: tax deal is 'best' Obama can get
In an impromptu news conference Friday at the White House, former President Clinton strongly endorsed President Obama’s Controversial tax-cut deal. House Democrats say Obama caved on tax-cut deal. Are they wrong? House Democrats block GOP-Obama tax deal. Is it dead? Bush Tax Cuts 101: Would extension boost the Economic Recovery? Mr. Clinton told reporters that, after reviewing the agreement the president reached with Republicans earlier this week, he felt it was “the best bipartis...

Commentary: Like Obama, will Ohios Brown move to middle in tax vote?
During the past few weeks as President Barack Obama has been tip-toeing to the political center on taxes and international trade, Sen. Sherrod Brown has suddenly found himself in a lonely outpost on the left. The question will be: Does he stay there or make his own shuffle toward the center? You should get part of the answer this week when the Senate votes on extending the 2001 and 2003 Tax Cuts for all Americans, no matter how much money they earn. If Brown, D-Ohio, votes for the bill, it will ...

Pass tax cut or we will all pay more: Obama to Dems
President Obama Saturday called on Democratic lawmakers to pass a Republican-backed tax-cut deal, telling them it would keep America's recovery on track. In his weekly radio address, the President said without the proposal's approval, more than 1 million jobs could be lost nationwide and families would face tax hikes in the new year. "If Congress doesn't act, Tax Rates will automatically go up for just about everyone in our country," he said yesterday. "That's unacceptable to me." The deal ext...

Monday Open Thread
hat tip:Blackwaterdog More about that really bad deal the “Negotiator in Chief” brought for the Middle Class and the unemployed (Did you notice that we hear from Mr. Weiner mostly when there’s something to whine about, preferably against the president? It sure does bring him a lot of TV appearances). Anyway, the graph present the entire horror: The breakdown: 53.1% Middle Class AMT (OBAMA) 3.3% Expensing Provision (OBAMA) 4.2% Tax Credits for Working Families (OBAMA) 6.2% Unemployment In

The Trickle-Down Theory of Stimulus
just what we need, more Tax Cuts (photo: Steve Rhodes via Flickr) With the Great Bipartisan Tax Cut Compromise, President Obama has officially adopted the world view of Republicans. 1. No matter what the problem is, Tax Cuts are the solution. 2. Government cannot solve people’s problems. Our current problem is massive Unemployment, so the President and his team of bank-loving economic officials preach that Tax Cuts are stimulus. No matter that Tax Cuts for the rich have a poor payoff in stim...

Nadler: On Taxes GOP Are a Bunch of Gangsters
Like this Story? Share it: Congressman Jerrold Nadler (D-NY) and former Governor Howard Dean (D-VT) gave Bob Schieffer their stance on the nature in Washington, D.C. as President Obama's tax deal approaches reform. Rep. Jerrold Nadler, D-N.Y., on "Face the Nation," Sunday, Dec. 12, 2010. (CBS) (CBS) Progressive Democrats today blasted the framework of a tax agreement negotiated between President Barack Obama and Republican congressional leaders, calling it the product of "Republican Blackmail."...

Last Word, I Hope
Most of the blogosphere continues to argue about the Tax Cut Compromise. I’ve said most of what I want to say, but most of the argument for me boils down to these points: One, the argument is that the Payroll Tax holiday is bad because if the lower Tax Rates became permanent they would eventually de-fund Social Security. I am skeptical the Republicans will be eager to extend the lower Payroll Tax rates this time next year, however, because - The Payroll Tax holiday doesn’t he...

Axelrod Predicts Tax Cut Deal Will Pass
(NewsCore) - White House Senior Advisor David Axelrod said Sunday that he expects President Barack Obama’s Tax Cut Compromise with Republicans to pass in its current form. “I believe that there will be a coming together around it,” said Axelrod, speaking on ABC’s “This Week” about the deal to extend the Bush tax cuts. “I don’t anticipate that it’s going to change greatly.” The deal goes to a test vote in the Senate on Monday. Democrats ...

House Democrats won't stop tax cut deal
Maryland Democrat Chris Van Hollen, incoming ranking member of the House Budget Committee, signaled that House Democrats will not stop the tax deal worked out between the White House, Republicans and Senate Democrats.  Just last week, the Democratic Caucus in the House of Representatives passed a nonbinding resolution expressing their Disapproval with the Tax Cut deal, citing the extension of tax cuts for upper income earners and adjustments to the Estate Tax. Additionally, House Democrats ...

Which Party Owns the Payroll Tax Break?
As David Frum wrote this morning, the GOP needs to reposition itself as the party of the Payroll Tax cut to prevent President Obama from running on that (popular) issue in 2012. Greg Sargent has recently come into possession of a White House slide which underscores why time may be running out for the GOP on this issue. The slide is being circulated to convince Democrats unhappy with the Tax Cut Compromise (Obama may consider them “sanctimonious”) that they in fact got the better en...

Obama takes credit for compromise (Politico)
President Barack Obama reprised his defense of his Tax Cut Compromise with Republicans in his weekly address on Saturday, arguing that the fate of Middle Class families — and the still-fragile Economic Recovery — is at stake as lawmakers consider the proposal. “The opportunity for families to send their kids to college hinges on this debate,” Obama said. “And our recovery will be strengthened or weakened based on the choice that now rests with Congress.” The...

Tax Cut Negotiations Continue, Udall Stands Firm
[E]ight Democrats including Ohio's Sherrod Brown wrote to Majority Leader Harry Reid to propose capping the Tax Breaks for incomes over $1 million. People making more than that would go back to Clinton-era Tax Rates. The savings should be used to shore up Social Security, Brown and the others wrote. [Pols emphasis] Class warfare? Not at all, these Democrats say. "Success in America should rightly be celebrated, but the very wealthy do not need Bonus Tax Cuts and America cannot afford to give ...

White House expects Congress to pass tax deal
By Vicki Allen WASHINGTON | Sun Dec 12, 2010 10:07am EST WASHINGTON (Reuters) - White House adviser David Axelrod said on Sunday he expected the House of Representatives will pass President Barack Obama's tax deal without significant changes. The Senate was expected this week to approve the deal Obama cut with Republicans but many Democrats in the House have complained that the president made too many concessions. "We believe that when it comes back to the House that we will get a vote and it...

Trust
I basically agree with Ezra Klein's opinion that, liberal conventional wisdom notwithstanding, there's nothing magical about the way Social Security is funded that protects it. And I disagree with Charles Blahous (and Keith Hennessey) that there's any "phony Accounting" or "double counting" involved in the Payroll Tax holiday along with an equal transfer from general revenues to Social Security. Here's the case for it: The problem is not with the tax relief but with an accompanying accounting ...

QE2 + Payroll Tax Cut = Helicopter Drop
It seems like only yesterday that I was hearing from people that QE2 wouldn’t be very stimulative because what’s the point of lowering Interest Rates when rates are already low. Then last week I was hearing that the Tax Cut stimulus deal might be bad because it was pushing Interest Rates up a bit. It seems to me that the right way to think about it is that these are two great tastes that taste great together. Fiscal stimulus helps The Economy by boosting demand, but we need to wor...

Obama defends tax cut deal in weekly address
Well, we all knew this was coming, right? Tax Cut deal! So we hammered out a deal that reflects ideas from both sides. It wasn’t easy, and it’s by no means perfect. And as with any Compromise, everybody had to live with elements they didn’t like. But this is a good deal for the American People. The vast majority of the tax cuts in this plan will help the Middle Class, including a new cut in Payroll taxes that will save the average family about $1,000. And as this plan is debat...