The Payroll Tax Cut Extension Revisited

As our friends in Washington debate the extension of the payroll tax cut a few things should be considered.

Just as I wrote long ago this is not a payroll tax cut. This is a reduction in Social Security Deductions. This is significant. The same program we are afraid will be out of money sometime in the next twenty years is the one we are reducing the amount of money we set aside for. Now we are told it is ok as the government is covering that amount that would have been contributed by individuals. Of course for those who think that money will be set aside must think the millions and billions that are in surplus are kept in a lock box and not spent.

Interestingly last year I said the Republicans were for this payroll tax cut is they hoped to starve the government and the best way to handle that is not to fund it and tax cuts are a fun way to not fund the government. It is popular sleight of hand until it is too late.

However in the debate for the renewal of this cut which I must say I am against the Republicans in the Senate are being more reponsible than their Democratic brethren. They wish to extend the cut but to fund this by cuts in other places. This is a practical solution. You cannot call everything an emergency and continially add to the deficit.

I am against this cut. The government should not cut SS contributions under any pretense.