Wednesday, July 20, 2011

Liberal Democrats Attack Obama For Supporting Payroll Tax Break

President Obama supports the payroll tax break because it reduces the social Security tax American workers pay. Only half of workers owe any Federal Income tax, but they all pay social Security tax. You would think liberals would support this plan because it gives money to their constituents who aren't Federal Income taxpayers. You would be wrong. Liberals don't really want to cut anyone's taxes. They want more spending.
(The Hill) — Liberal Democrats are stepping up their attacks on President Obama for his plan to extend a payroll tax break by a year.
Rep. Peter DeFazio (D-Ore.) blasted Obama last week for his “stupid Social Security tax holiday,” arguing that money would be better used on more stimulative spending.
He and other liberal lawmakers fear the extended tax holiday might make a permanent cut more likely, thus slashing Social Security’s primary funding stream and threatening future benefits.
“It’s a unique tax break. You don’t just give away money, you have to borrow money to give away money, to restore the Social Security trust fund,” DeFazio said Friday. “If you’re going to borrow $110 billion, spend it on infrastructure [and] put 4 million people to work instead of pissing away 25 bucks a week, which is what we’re doing now.”
The fight over the payroll cut replays a debate from December, when Obama and Senate Republicans cut a deal to slash workers’ payroll taxes from 6.2 percent to 4.2 percent this year as part of a larger package to extend the George W. Bush-era tax rates.
I support the payroll tax cut, but cutting taxes on small businesses and entrepreneurs wold create more jobs. 

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