Economic Uncertainty and Taxes

So the Republicans have agreed to a two month extension of the payroll tax “holiday.”  A few points:

  1. There’s a good case to be made that economic uncertainty causes businesses to reduce long term investments (e.g. in things like employees), therefore, exacerbating economic downturns.  Admittedly, causality is difficult to prove, but there’s a certain logic to the argument.  So what to make of a Congress and administration that comes up with a two month tax holiday?  What’s next?  Weekly tax changes?  Daily?  Can things get any more uncertain in the tax realm?
  2. Are we going to admit now that Social Security is not a pay-as-you-go program?  If we’re getting a “holiday” from paying into it and yet retirees will continue to take out the same amounts, then where the devil is the money coming from?  (Answer: general funds).
  3. Are Americans really going to cheer Obama for a stupid two month payroll tax holiday?  Apparently, Obama is blathering on that the average family will save $40 a month… for two months.  That comes to a whopping $80.  Now don’t get me wrong, I’m a cheapskate and am happy to keep an extra eighty bucks, but I’d much prefer long term tax reform to this foolishness.
  4. Keystone pipeline?   The Republicans were brilliant, I thought, to link the pipeline to their own one year tax cut extension bill.  And now they’ve just rolled over, given up, lost the strategic advantage.   What happened?
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About Mystic Cowgirl

I worked overseas in the aid game for longer than I'd like to admit and learned several important things: 1) Third World countries aren't poor because America is rich. They're impoverished due to socialist governments that provide neither rule of law nor basic infrastructures; 2) These socialist governments redistribute wealth from taxpayers to the government workers. There's no benefit to the poor or downtrodden, and certainly not to the general welfare in terms of infrastructure improvements. 3) America is moving toward the Third World model. Rule of law has been subverted because equality under the law is disappearing as special interests carve out exemptions to regulations and special favors under the law. The redistribution of wealth to government began decades ago -- total compensation for government employees now outpaces salaries in the private sector.
This entry was posted in conservative politics, Economy, news politics, Obama, political issues and tagged , , . Bookmark the permalink.

One Response to Economic Uncertainty and Taxes

  1. O says:

    The liberal win here is on extending federal unemployment for another 6 months. Unemployed folks will be on the dole for a full 2-years.

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