Wednesday, December 08, 2010
Now Wait Just A Minute!
The tax deal reached Monday by the White House and congressional Republicans would cut worker payroll tax contributions by about a third. The White House said the arrangement will put more money in workers' pockets at a time when there is considerable concern about weak demand for goods and services undermining a fragile recovery.
Republicans acknowledged that the expiration of the tax holiday will be treated as a tax increase. "Once something like this goes into place, a year from now, when it expires, it'll be portrayed as a tax increase," said Sen. Bob Corker (R-Tenn.). So in a body like Congress, precedents matter and this is setting a precedent. I think that certainly is going to create some problems down the road if it passes."
Given that Congress, under Democratic control, can't gather itself to let tax cuts for the wealthiest Americans expire, members of both parties are convinced that letting the payroll tax rate revert back to its current spot will be near impossible.
Nice job Mr. President! Seriously, which party do you belong to?
Think I'll be buying Nestle stock. They own Ralston-Purina, the makers of Friskies cat food. Since that's what many baby boomers will be eating in 20 years, it seems like a good investment.