Saturday, December 17, 2011

Senate Payroll Tax Cut Compromise Gimmick

In Washington speak, the 2% payroll tax cut extension, for just the first two months of 2012, that will cost about $33 Billion, stolen from the Social Security Trust Fund, has been paid for by a small tax on mortgages funded by Fannie Mae and Freddie Mac.   In fact, since Fannie and Freddie fund 9 out of 10 mortgages, this tax will cost the average American, getting a new $200,000 mortgage, or refinancing an old one, another $15 a month.   By the way, this new tax hits the Middle Class hardest since Fannie and Freddie loans are usually conforming lower values loans.  Over the next ten years, this new tax, paid primarily by the Middle Class, supposedly will bring in $37 Billion in revenues to the federal government.   

So let me get this straight.   The 2% payroll tax cut, primarily going to the Middle Class, will cost $33 Billion for just the first two months of 2012.   And then, the federal government will wait 10 years to recover this money, from the Middle Class, presumably to put it back into the Social Security Trust Fund.   Like that is going to happen.  Since more money is now going out for monthly Social Security payments, than coming in from contributions,  this is just one more nail in the coffin of Social Security that is already headed toward bankruptcy.  

This "compromise" between Republicans and Socialists in the Senate was cobbled together so that they can all go home for the Christmas holidays and the President can head off to Hawaii for his vacation.     Once again they just kicked this can down the road, when they will face this issue again two months from now when the payroll tax cut extension expires.  Hopefully, the House of Representatives will reject this deal.  

While tax cuts would be great if it was part of an overall tax reform plan, making personal and corporate income tax rates lower, by eliminating various deductions and loop holes, messing with Social Security when it is already going bankrupt is just plain irresponsible, especially since it will do little to restore economic growth, or create jobs.  

Washington DC and the federal government are broken.  Shortly, our National Debt will jump to $16.7 Trillion, the amount authorized in the recent Debt Ceiling debacle.   We all know that Socialists in government, including President Obama are completely irresponsible as they continue to move our country toward bankruptcy.   If we can't count on Republicans to stop this fiscal madness, no matter what it takes, then we will have to form the National Freedom Conservative Party of America to take back our country by throwing all the bums out office. 

There can be no more compromise with Socialists if we are to roll back 100 years of Socialist creep that is bankrupting our country.   Meeting Socialist "half way" just gets us half way closer to bankruptcy and the loss of our National Sovereignty and freedom.   We can't let that happen.   We have to take back our country in 2012 and 2014 by sweeping these Socialists, including President Obama, out of office.   But in doing so, we must elect real Conservatives, that are committed to ending deficit spending and a balanced budget.   We also will need to enact a Balanced Budget Constitutional Amendment, which includes limits on federal taxing authority to get the job done. 

Our elected representatives of both political parties continue to prove that they cannot be trusted to protect the interests of the American people or our nation.   This Senate Payroll Tax Cut Gimmick is just one more example of reckless irresponsibility coming out of Washington.   It all has to stop.    We have to put on our hip boots in 2012 and 2014 to drain the swamp in Washington DC.   The work will be dirty and stinky; but we have to throw the bums out to take back our country and get the job done.  

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