GOPers finally a tax hike they like, one
that will screw the middle-class and Obama
at the same time. Perfection!
Republicans
are balking at President Obama's proposal to extend the payroll tax deduction for another year:
"It's always a net positive to let taxpayers keep more of what they earn," says Rep. Jeb Hensarling, "but not all tax relief is created equal for the purposes of helping to get the economy moving again."
And why aren't they eager to extend it?
The 12-month tax reduction will cost the government about $120 billion this year, and a similar amount next year if it's renewed.
That worries Rep. David Camp, R-Mich., chairman of the tax-writing Ways and Means Committee, and a member of the House-Senate supercommittee tasked with finding new deficit cuts. Tax reductions, "no matter how well-intended," will push the deficit higher, making the panel's task that much harder, Camp's office said.
Oh! I see. Cutting taxes has a negative impact on the budget because it increases the deficit. At least that's what it does when you're cutting taxes on the middle-class. If you cut them on "job creators" then you actually reduce the deficit. Dynamic scoring, baby!
And heaven forbid if you should consider short-term tax relief:
"We don't need short-term gestures. We need long-term fundamental changes in our tax structure and our regulatory structure that people who create jobs can rely on," said Sen. Lamar Alexander, R-Tenn., when asked about the payroll tax matter.
House Majority Leader Eric Cantor, R-Va., "has never believed that this type of temporary tax relief is the best way to grow the economy," said spokesman Brad Dayspring.
Funny how they didn't see things that way last December when they not only extended the payroll tax cut in the first place, but they also extended the Bush tax cuts by two years. But I guess two-years is a "long-term" to these jokesters.
Appearing on ABC's This Week, David Axelrod summed up the GOP position:
Last week, I saw the spokesman for the speaker of the House say that they would not call any of the president's job-creating proposals, other than his proposals for three new trade treaties, which we need to open up markets, and for -- for patent reform, so that entrepreneurs can bring their products to market more easily -- those are good things, but we need to do more.
For example, we need to extend the payroll tax cut that's in place right now. It is unthinkable to me that the Republican Party would say we can't touch -- we can't touch tax cuts for the wealthy, we can't touch special interest corporate tax loopholes because that will hinder -- hinder the economy, but we'll allow a $1,000 tax increase on the average American come January. How could that be? The only explanation for it is politics.
Here's why Republicans don't want to do it: it's a twofer. They get to screw the President and they get to screw the middle-class, all at the same time. It's what they refer to as a "golden opportunity" and they don't want to pass it up.