President Obama is pushing for the extension of what he claims to be a tax holiday for all Americans. He reduced the payroll tax from 6.2% to 4.2% and now wants to extend it. It is a farce and it is digging our debt hole even deeper.
The payroll tax (FICA) is the sole funding source for Social Security. The money pulled out for FICA is one of the few earmarked taxes that are legislated to a particular use. The problem is by reducing the payment we make into SS we should also be reducing the benefits since we are putting less into the account. Does anyone think this will happen?
Every paycheck we receive at the reduced rate is going to need to be made up in order to cover the current reduction. The system is already going bankrupt; this will only increase the speed in which we get there. So why is the president pushing this so hard?
The answer is simply to buy votes and perpetuate his class warfare re-election campaign. He is buying votes because unlike the income taxes which are only paid by 52% of the earning American, the payroll tax is taken out of every working person’s paycheck. By reducing the payroll tax and then declaring the “rich” need to pay their fair share to make up the short fall, the president gets the best of both of his worlds.
Like everything this president does, it divides Americans and increases our debt as a nation. It is disappointing and despicable. But that describes this president in a nutshell…