Wednesday, August 24, 2011

GOP Wants To Raise Taxes–On Wage Earners

Both the Bush tax cuts and the payroll tax cut were supposed to be temporary. The Republicans have been adamant about extending the Bush tax cuts, especially for the wealthy. Are the Republicans also following their anti-tax stance regarding the payroll tax cut for employees? Well...not so much. Rep. Jeb Hensarling of Texas (left) claims that the Bush tax cuts stimulate the economy. Notice all the jobs they’ve brought us? Rep. David Camp of Michigan is suddenly worried about tax cuts contributing to the deficit–the cuts that benefit workers, that is. From the AP:

...GOP lawmakers are so virulently anti-tax, surely they will fight to prevent a payroll tax increase on virtually every wage-earner starting Jan. 1, right?

Apparently not.

Many of the same Republicans who fought hammer-and-tong to keep the George W. Bush-era income tax cuts from expiring on schedule are now saying a different "temporary" tax cut should end as planned. By their own definition, that amounts to a tax increase.

The tax break extension they oppose is sought by President Barack Obama. Unlike proposed changes in the income tax, this policy helps the 46 percent of all Americans who owe no federal income taxes but who pay a "payroll tax" on practically every dime they earn.

..."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." The Texas lawmaker is on the House GOP leadership team.

...[The cost of the payroll tax cut] 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.

But Republican lawmakers haven't always worried about tax cuts increasing the deficit. They led the fight to extend the life of a much bigger tax break: the major 2001 income tax reduction enacted under Bush...

...Many Republicans are adamant about not raising taxes but largely silent on what it would mean to let the payroll tax break expire.

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