Arguments Against the Payroll Tax Holiday

As I have previously written, the 2-percentage point payroll tax deduction is a bad idea. The current reduction expires March 1, but it appears that enough Congree members sup

port extending it through the rest of the year. It is a shame that despite warnings from the annual Social Security Trustees” reports, even those who support entitlement reform are going along with the extension of this tax cut, further gutting Social Security. In today”s Townhall, former labor secretary Linda Chavez wrote eloquently of the downside to the payroll tax cut. She concludes by saying, “Unfortunately, politicians know that real solutions will entail difficult decisions… It”s pretty simple, but painful, especially for politicians addicted to handing out goodies without figuring out a real way to

pay for them.” Well said.

Comments (2)

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  1. Joe Barnett says:

    Instead of undermining Social Security’s finances further, Congress should allow people to put the money into their retirement account (and use them to start accounts for those who don’t already have them). The diversion of revenue could be paid for by a dollar-for-dollar reduction in earned Social Security benefits for individuals with higher incomes.
    Otherwise, I think this “holiday” will become permanent, and Social Security will be just an unfunded welfaree program (like Medicaid).

  2. Lowala says:

    to me being a young person, “You think about rrteeemint too much for someone your age. You’ll live just fine if you save some money and don’t think about it.”1) Yes, but only because I don’t require alot. Waste alot on restaurants today…2) They had better. Maybe it won’t keep up with inflation, but there are just too many old people stimulating the economy with their government checks today. What would happen to our economy if that stopped? How much does social security stimulate currently. I bet the retirees spend just about everything the get. :) 3) Have three kids so we are saving for their education and can’t put as much away for rrteeemint. Total is 6% for rrteeemint, but the wife goes back to work next fall so it should get way better. Of course, we’ll get phased out of the wonderful world of government give me’s. No plan to change lifestyle so we’re good. 4) Here in MN. Plan to go to 81 baseball games a year and spend spring training down with the team. Hopefully the children will stay in Minnesota so we don’t have to fly around to see them.5) We’re in our mid thirties. The wife plans to retire at 52. I hope I always having something going for other income. I’m just a tech right now, and don’t do side work. As I get older I hope to spend more time figuring out ways to give big gifts to friends and family without impacting our rrteeemint accounts.

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