Interesting Tax Read

[ShockBand]

Though what is proposed isn't real and deep tax reform like I think is needed, its too bad this idea, though temporary, doesn't get more legs. It would have greatest and most immediate impact for those in the lower and middle income brackets.

http://money.cnn.com/2010/10/01/news/economy/payroll_tax_holiday/index.htm

[SB Shock]

I am of the position that this nation can not have any more tax cuts without equal or greater spending cuts.

[Downtown Shocker Brown]

SB... does that mean I would have to get a job, pay for my own food, pay fully the price of the place I choose to live, and be responsible for my own well being?

Who in their right mind would want to live in that society?

What we really need is SMALL steps to change the entitlement that so many feel they have been PROMISED by the previous generation. Those who fought in WWI and WWII did so and gave their lives so that we can have a better life of our choosing. Not one handed to us on a formed platter from China.

[SB Shock]

SB... does that mean I would have to get a job, pay for my own food, pay fully the price of the place I choose to live, and be responsible for my own well being?

Who in their right mind would want to live in that society?

What we really need is SMALL steps to change the entitlement that so many feel they have been PROMISED by the previous generation. Those who fought in WWI and WWII did so and gave their lives so that we can have a better life of our choosing. Not one handed to us on a formed platter from China.

Yes we must end the 'federal slavery"

[SB Shock]

deleted duplicate post

[Maggie]

Re: Interesting Tax Read

Though what is proposed isn't real and deep tax reform like I think is needed, its too bad this idea, though temporary, doesn't get more legs. It would have greatest and most immediate impact for those in the lower and middle income brackets.

http://money.cnn.com/2010/10/01/news...iday/index.htm

I would have been willing to consider this over a year ago as an alternative to the stimulus bill or various forms of "stimulus". Back then, arguably, it would have been a better form of stimulus and I remember it being discussed as an alternative but it never gained any traction. A payroll tax holiday, while expensive (and it would be denounced as damaging to entitlements), would have boosted household disposable income while giving employers an incentive to retain more workers on their payrolls. Plus it is simple and elegant, it can be explained in 30 seconds, and I’d bet it would be wildly popular.

The problem, I suppose, is largely political. It’s not practical for politicians. Let’s assume a guy brings home $3000/month. Suddenly his bring home is maybe $3600/month, he’s going to be inclined to pay on that mortgage, pay some bills, and maybe buy a few things. But what happens when the tax holiday expires and his take home pay goes back down to $3000/month. This feels like a huge tax increase, and it is. It becomes all too obvious then to every working person how much of their money the government is taking from them, and they’ll want to keep the tax cut. The Democrats can never allow this.