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Subscribe to RSSSenate Democrats are pressing ahead on President Barack Obama's plan to cut in half every worker's payroll taxes next year — paid for by a 3.25 percent tax surcharge on the very wealthy.
The $248 billion plan would trim Social Security payroll taxes from 6.2 percent to 3.1 percent in hopes of propping up the still-weak economy. It also would cut in half the 6.2 percent tax paid by employers on the first $5 million of their payroll.
A spokesman for Senate Majority Leader Harry Reid, D-Nev., says Democrats will hold a test vote on the plan later this week.
A 2 percent payroll tax holiday enacted a year ago expires on Dec. 31 and it tops the agenda in the waning days of this congressional term.
Republicans are likely to oppose the plan because it would post a permanent surcharge on income exceeding $1 million.
Reid's move is the latest political salvo by Democrats as the two parties spar over the best way to create more jobs. Monday's move appears aimed at drawing a distinction between Democrats and Republicans on taxes, with Reid seeking to maneuver Republicans into opposing the payroll tax cut.
Indeed, the payroll tax cut is unpopular with many Republicans who say the existing 2 percent cut hasn't done much to create jobs.
"The payroll tax holiday has not stimulated job creation. We don't think that is a good way to do it," said Sen. Jon Kyl, R-Ariz., in a Sunday television interview.
But many economists say that allowing the tax cut to expire is likely to do at least some damage to the economy.
"I can't believe that at a time when working families in this country are struggling paycheck to paycheck, when we need them to have the resources to buy things in our economy, to create wealth and profitability and more jobs, that the Republican position is, they'll raise the payroll tax on working families?" said Sen. Dick Durbin, D-Ill. "I think that just defies logic."
Republican leaders have signaled a willingness to work with Democrats on both the payroll tax cut and a further extension of jobless benefits for people who have been unemployed for six months or more. But the proposals are so expensive that it's unlikely that lawmakers will find a way to fully pay for them.
Instead, after spending most of the fall waiting for the deficit "supercommittee" to devise a plan to cut the deficit by $1.2 trillion or more, it seems that lawmakers are actually on track to increase the deficit as the congressional session comes to a close.
Kyl and Durbin spoke on "Fox News Sunday."
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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I can’t wait for the Republicans to vote to raise taxes on all wage earners.
lol DENNIS. The rediculousness of you subservient misinformed ohioans, voting in raises for civil servants is laughable. The average BENEFITS PACKAGE ALONE for a firefighter in ohio is 35000 per year! Ha! And you voted for more!!!! Taxes!!!! On yourself!!!!!!! To pay people that do thier 35 hours monday and tuesday and take the rest of the week off!!!!! ARE YOU KIDDING ME?! DOYYYYYYY!!!!
While Firefighters, police, teachers and other state workers took pay cuts and benefit reductions our Gov Kasich, his staff and members of our state capital including staffers received a pay increase between 8% and 12%.
Do you have a source for your claim about the cost of benefits for Firefighters?
Of course! Google it. You? I find it hard to believe police , firemen and teachers took a pay cut. Never happened> ever.. I looked it up after watching the ed show and his circus.
McDonald spoke on behalf of Protect Ohio Protectors, a coalition of police and fire unions opposed to Issue 2 that commissioned a report titled “Shared Sacrifice.” It states that public employees have made concessions totaling $1,059,881,500 dating from 2008 to 2011.
That is over a billion dollars in cuts in pay/benefits.
http://www.dispatch.com/content/stories/local/2011/10/19/unions-gop-issue-dueling-reports.html
For fiscal year 2010, the average annual Ohio Police and Fire Pension Fund benefit for recipients was $35,650.
Dennis, im not going on a tangent about this with you, but your facts are ESTIMATED LOSSES FROM NOT GETTING THE RAISES THEY DEMAND. Your quoting a website picking your own pocket. Find another site for yourself and look at both sides. BAAA BAAAA
The Columbus Dispatch is a conservative newspaper.
Get over yourself ... you lost this one ... the voters understood the issue and voted correctly.
“based on the difference between what school districts estimated they would spend on employee salaries and benefits and what was actually spent,” the report says. I looked at the link and read it. took me 5 seconds to find this tidbit, making the article worthless. I could care less what you do in ohio. we lost millions of good newyorkers due to high taxes. Youre only killing your own golden goose. Good luck whining when they tax the CRrap outta you!
dennis, besides the other comment i left above..... the bush tax cuts increased revenue to the govt according to its own website. the govt is taking in more now than before the tax cuts, even with the recession. the stealing of additional funds from ssi was supposed to spur job growth. it failed. it gets shelved. its all there, on OUR govt website. You just have to look for yourself... (gasp
Democrats continue with their class warfare for political gain. The reduction in payroll taxes for workers is a hoax that ends with, the worker reducing their contributions to Social Security and Medicare when these two entities require more money to stay afloat, Obama wants to throw under the bus the voters earning over $ 120,000 a year, the so-called rich as Joe the Plumber who are precisely the job creators. This is the contradiction of the class war of the Democrats. Obama wants the votes of the 50% who pay no taxes because is the easy way to win the reelection, paying for votes with taxpayer money.
The payroll tax holiday only affects Social Security
which is solvent for many more years than Medicare.
It's becoming more clear by the week that Republicans are lying when they claim to be against tax increases. What they mean is they're against tax increases for the wealthy elites. Everyone else is just a leech in their Ayn Rand insanity and deserves to suffer.
Stand firm and don't raise taxes. Its sad that they put good policy with these tax increases, knowing it won't pass.
Its not a tax increase. Its common knowledge social security is unsustainable, even with the restoration to PREVIOUS LEVELS . Baracalypse is also robbing hundreds of billions from the account as well. Lowering ssi payments from the paychecks is another lame attempt at buying votes. It didnt work. Extending it only shortens the time of this massive ponzi scheme. Heres to you, Obama leg humpers! I LOVE THAT PHRASE! Its soooo fitting!
If letting the payroll tax holiday expire is not a tax increase then letting the Bush
tax cut expire is NOT a tax increaseeither {period}.
dennis, besides the other comment i left above..... the bush tax cuts increased revenue to the govt according to its own website. the govt is taking in more now than before the tax cuts, even with the recession. the stealing of additional funds from ssi was supposed to spur job growth. it failed. it gets shelved. its all there, on OUR govt website. You just have to look for yourself... (gasp)
Social Security is NOT unsustainable. The simple move of removing the cap on SSI earnings by itself would fill HALF the anticipated shortfall for the next 75 years!
I look forward to one day reading about russ' house burning to the ground.
Nice Ray. Dont like the facts? Thats the best as a lib you can do? Its that idiocy thats makes it so easy for someone to lead you around by the nose. Try looking at the facts i posted and make your own decision. youll like the new you!
besides the other comment i left above..... the bush tax cuts increased revenue to the govt according to its own website. the govt is taking in more now than before the tax cuts, even with the recession. the stealing of additional funds from ssi was supposed to spur job growth. it failed. it gets shelved. its all there, on OUR govt website. You just have to look for yourself... (gasp)
Yet another Conservative lie, russ. The government now takes in more because there are MORE PEOPLE and therefore a larger economy. There were BIG notches in tax collections after the Reagan and Bush tax cuts, illustrating that government revenue is lower than it would have been without these destructive failures.
Hey: Since you Dems have all the insider trading deals: wow: why don't you lousy deceiving liars just pay all those who are on your voting list and need money because you prevent the pioneers from creating and starting new companies and opportunities to excel in this country. You dems are nothing but european losers and you love the down and out because YOU PUT THEM THERE. Everyone of you dems should be tried for treason and sent to Africa where your leader has his roots. You dems are and those who vote for you and nothing but no good liars and deceivers.
43% approval rating....worst since Carter...go home bam-bam...
You think that a daily Gallup poll is something to crow about? The president may be at 43% in that particular poll but the Congress, namely the baggers, would absolutely love to have a rating that high. I'll go so far as to say that they'd love to have a rating of at least 15 nowadays. Sorry try again when you have something to bring to the table other than nonsense.
Well where are all of those jobs that the Bush tax cuts were supposed to create by giving the "job creators" more money in their pockets? That's right the money stayed in their pockets.
"The payroll tax holiday has not stimulated job creation. We don't think that is a good way to do it," said Sen. Jon Kyl, R-Ariz.,
Yeah, that's because the average wages is at an all time low and corporate earnings are at all time high. Do you think a guy making minimum wage is going to go out and spend....now you want to take more of his money??? How about having the corporation (who's making record profits) start paying the workers more, then maybe they will spend. Why can't you republicans get it, job creation doesn't happen until there is a DEMAND. If we are not buying products because we aren't paid enough or don't have jobs, there won't be a demand for goods. I would love to trade in my 10 yr old car but unless I get a raise I driving that baby for another 10.
It amazes me that we live in a world where politicians like Kyle are allowed to tell bold-faced lies CONSTANTLY with no repercussions. Kyle's assertion that the payroll tax holiday hasn't stimulated job creation simply doesn't square with calculations by Economists that letting it expire would decrease economic growth next year by 1-2%.
Wake up people! Our economy needs consumers with $, a lot of consumers, not just the top few. The GoP likes a flat tax , then let it be so, take the top off of the payroll tax and lower the rate, problem solved. The public is not aware of the 100,000/yr top on payroll tax and the media seems to like it that away. I am for a flat tax on income tax as well, with a responsible cost of living deduction for all and a short form filing similiar to what we have now. This is what people think of when they say they want a flat tax. When is the media going to inform the public and stop the cover up.
GOV. CHRIS CHRISTIE about Obama:
"I was angry this weekend listening to the spin coming out of the administration, about the failure of the Super Committee. And that the president knew it was doomed for failure, so he didn't get involved. Then what the hell are we paying you for? It's doomed for failure, so I'm not getting involved? Well, what have you been doing exactly?"
Actually it was the Republicans members of the super committee that requested the President and Whitehouse to stay out of the negations so that it would not become political.
Our President did what they asked.
I guess Christy wasn’t paying attention to that part … or just ignored it so he could make political points as he promotes himself for the VP position.
Dennis,
Thats a good one. Since when does Obama listen to the Republicans...
LOL
I wish the tea pubs will make up their mind they want the President out of the super committee meetings, then when it doesn't work they said he should be in on the meeting. See how flip floppish these people are, they don't know their own mind. How can they run a country, I can see it now. They will toss a coin heads up we hit the red button, tails we don't. Heaven help us if any of these candidates get in office.
It's strange that republicans insist this tax cut to be paid for. When they passed the Bush tax cuts they maintained that tax cuts paid for themselves by increased economic activity. I guess tax cuts for middle class people are different than tax cuts for billionaires.
That's exactly what Conservatives believe. These devotees to the mythology of Ayn Rand and Supply Side economics believe that only tax cuts for the wealthy elites create jobs.
I just don't understand republicans, do want to reduce taxes or raise taxes? It seems like it's okay to increase taxes on the middle class but not okay to increase taxes on the rich (even though the rich is only 15% on their investment income - down from 28%). So I guess all you republicans must either be really rich or just dumb! drinking too much of them republican kool-aid.