GOP May Be OK To Tax Increases That Obama Wants To Avoid
WASHINGTON (AP) - News flash: Republicans in Congress want to raise taxes.
Impossible, right? The Republicans are so vehemently anti-tax, will surely fight to avoid increasing payroll taxes in almost all employees on January 1, right?
Apparently not.
Many Republicans who fought the same hammer-and-keep George W. Tong Of the time Bush tax cuts to expire after the plan now says another cut "temporary" tax will end as planned. By their own definition, is equivalent to a tax increase.
Impossible, right? The Republicans are so vehemently anti-tax, will surely fight to avoid increasing payroll taxes in almost all employees on January 1, right?
Apparently not.
Many Republicans who fought the same hammer-and-keep George W. Tong Of the time Bush tax cuts to expire after the plan now says another cut "temporary" tax will end as planned. By their own definition, is equivalent to a tax increase.
Extension of the tax relief that is requested by opposing President Barack Obama. Unlike the proposed changes to the income tax, this policy allows all 46 percent of Americans who have no tax liability in federal revenues, but pay a "payroll tax" in virtually every penny they earn.
There are other differences, and Republicans say their position is consistent with its goal of fiscal policy that promotes long-term employment and to give greater certainty to the economy.
"It is always a net positive for the taxpayers more than they earn," said Rep. Jeb Hensarling, "but not all tax cuts are the same for the purpose of helping to stimulate the economy again." The legislature Texas is the team of the House GOP leadership.
There are other differences, and Republicans say their position is consistent with its goal of fiscal policy that promotes long-term employment and to give greater certainty to the economy.
"It is always a net positive for the taxpayers more than they earn," said Rep. Jeb Hensarling, "but not all tax cuts are the same for the purpose of helping to stimulate the economy again." The legislature Texas is the team of the House GOP leadership.
The discussion is likely to boil over the coming weeks a special committee wants a major mutual reduction in the deficit and to weigh the tax cuts are sacred.
This is a tax that most workers' pay, but many do not recognize, because they do not read, or understand their pay matrix. Employees normally pay 6.2 percent of salary into a tax by the name of social security. Their employer will pay the same amount, for a total of 12.4 percent per employee.
As part of a bipartisan agreement on spending in December last year, Congress approved the request for Obama to reduce the share of employees to 4.2 percent per year, the rate has not changed employers . Obama wants Congress to extend the reduction of a further year. If not, the return rate to 6.2 percent on January 1.
This is a tax that most workers' pay, but many do not recognize, because they do not read, or understand their pay matrix. Employees normally pay 6.2 percent of salary into a tax by the name of social security. Their employer will pay the same amount, for a total of 12.4 percent per employee.
As part of a bipartisan agreement on spending in December last year, Congress approved the request for Obama to reduce the share of employees to 4.2 percent per year, the rate has not changed employers . Obama wants Congress to extend the reduction of a further year. If not, the return rate to 6.2 percent on January 1.
Obama said the payroll tax in his weekend radio and the Internet address on Saturday, when he asked Congress to work together with the measures that will help the economy and create jobs. "There are things we can do now that will bring more customers for businesses and new jobs throughout the country. We can cut payroll taxes again, so families have to spend an extra $ 1,000," he said.
Payroll taxes for Social Security, apply only to the first $ 106,800 of the salary of a worker. So $ 2136 is the biggest advantage that no one can win reducing by one year.
The vast majority of Americans earning less than $ 106,800 a year. Millions of workers pay more in payroll taxes than federal taxes.
The tax reduction of 12 months will cost the government $ 120 billion this year, and a similar amount next year if it is renewed.
Payroll taxes for Social Security, apply only to the first $ 106,800 of the salary of a worker. So $ 2136 is the biggest advantage that no one can win reducing by one year.
The vast majority of Americans earning less than $ 106,800 a year. Millions of workers pay more in payroll taxes than federal taxes.
The tax reduction of 12 months will cost the government $ 120 billion this year, and a similar amount next year if it is renewed.
He worries Rep. David Camp, R-Mich., Chairman of the Ways and Means Committee tax write and member of the task supercommittee House and Senate to find new deficit cuts. The tax cuts, "no matter how well intentioned," will push the deficit higher, making the Committee's task is much more difficult, the camp office said.
But Republican lawmakers have not always concerned about the tax cuts increase the deficit. They led the fight to prolong the life of a much larger tax break: the big 2001 tax cuts adopted during Bush. It was to expire early this year. Obama has campaigned on a promise to end tax breaks for the wealthiest Americans, but solid GOP opposition forced him to backtrack.
Many Republicans are adamant not to raise taxes, but in silence much that would mean leaving the payroll tax cuts expire.
But Republican lawmakers have not always concerned about the tax cuts increase the deficit. They led the fight to prolong the life of a much larger tax break: the big 2001 tax cuts adopted during Bush. It was to expire early this year. Obama has campaigned on a promise to end tax breaks for the wealthiest Americans, but solid GOP opposition forced him to backtrack.
Many Republicans are adamant not to raise taxes, but in silence much that would mean leaving the payroll tax cuts expire.
Republicans are citing major differences between the two "temporary" taxes, starting with the fact that Bush, the measure was a 10-year life from the beginning. To stimulate job growth, these lawmakers say it is better to reduce income taxes for individuals and businesses rather than expanding the tax benefit pay.
"We need short-term actions. We need long-term fundamental changes in our tax structure and our regulatory structure that people who create jobs can be trusted," said Sen. Lamar Alexander, R-Tenn., Asked about the issue of payroll taxes.
House Majority Leader Eric Cantor, R-Va. "Please, never thought that such a temporary tax relief is the best way to grow the economy," said the spokesman Brad Dayspring.
The partisan Congressional Budget Office said reductions in labor costs give the economy a boost in the short term. But he says the benefit is greater if the employer gets the tax break instead of or in collaboration with workers.
Some Republicans have taken up a wait and see attitude, expecting the payroll tax questions, engage in barter in future negotiations to reduce debt.
Neither Speaker of the House John Boehner, R-Ohio, and Senate Minority Leader Mitch McConnell, R-Ky., Has taken a strong position to extend for one year the tax reduction.
Most of the GOP presidential candidate also walk lightly.
The former Massachusetts governor Mitt Romney has not categorically exclude an additional year for payroll tax cuts, but he "would rather see the tax cut pay of the employer" to encourage job growth, his campaign said.
Former Speaker of the House Newt Gingrich said Republican will be subject to increasing pressure to increase the payroll tax cuts. If they refuse, he said in a recent speech, "we're going to end in a position where we want to increase taxes on low-income Americans the day they go to work."
Many Democrats are also ambivalent about the extent of Obama's proposed tax cuts. They are more focused on the protection of deep cuts in social spending. Some fear that the reduction of several years of taxes for Social Security that undermine the program's health and height.
For decades, the payroll tax has generated more income than Social Security pays out in benefits. The surplus was used to finance government operations. Last year, however, Social Security benefits began to exceed its revenue sources identified, to force the program to begin operating its "trust fund" of government bonds.
The former Massachusetts governor Mitt Romney has not categorically exclude an additional year for payroll tax cuts, but he "would rather see the tax cut pay of the employer" to encourage job growth, his campaign said.
Former Speaker of the House Newt Gingrich said Republican will be subject to increasing pressure to increase the payroll tax cuts. If they refuse, he said in a recent speech, "we're going to end in a position where we want to increase taxes on low-income Americans the day they go to work."
Many Democrats are also ambivalent about the extent of Obama's proposed tax cuts. They are more focused on the protection of deep cuts in social spending. Some fear that the reduction of several years of taxes for Social Security that undermine the program's health and height.
For decades, the payroll tax has generated more income than Social Security pays out in benefits. The surplus was used to finance government operations. Last year, however, Social Security benefits began to exceed its revenue sources identified, to force the program to begin operating its "trust fund" of government bonds.
0 comments:
Post a Comment