Extensn Of SS Tax Cuts Typicl Politics Driven Congresonl Mess!

Discussion in 'Congress' started by JimofPennsylvan, Feb 10, 2012.

  1. JimofPennsylvan
    Offline

    JimofPennsylvan VIP Member

    Joined:
    Jun 6, 2007
    Messages:
    385
    Thanks Received:
    56
    Trophy Points:
    78
    Ratings:
    +83
    The major item currently on Congress's "To-Do" list is to extend the Social Security Two-percent Tax Cut along with extending unemployment benefits along with stopping for another year the automatic cuts in reimbursement fees for Medicare Doctors. The appalling thing about this whole effort is the lack of straight talk among members Congress of both parties over this matter they characterize this first item as we can't raise taxes on the American people which will occur if we let the Social Security tax reduction lapse we aren't doing our duty if we allow this. This is a total manipulative characterization of the issue by Congress. The Congressional Budget Office estimates a national $1.2 trillion dollar deficit for this fiscal year now we know the deficit for the prior two fiscal years was each over a trillion dollars this amounts to a budget crisis, it is intolerable (it is generational theft) and economically dangerous to run these types of deficits; all this means that without a doubt this social security tax deduction is a short-term temporary measure. To fill in the picture a little clearer there is an army of economist that say that it is too risky right now for the welfare of the nation's economy to take away the injection of revenue this tax cut puts into the economy, the economic recovery isn't strong enough to with certainty withstand such a negative development. So the truth of the matter is that the federal government needs to extend the Social Security tax cut for the economic stimulative effect, politicians of both parties should acknowledge this and tell the American people this tax cut is definitely only for the short-term the country can't afford otherwise then Congressional authorities can than rightfully characterize the problem is how can the nation lower the cost of this tax cut extension to meet this economic stimulative effect need? America's economy is two thirds-based on consumption so with this tax cut extension we don't want to significantly hurt this element of the economy but Congress really shouldn't care about increasing capital for investment with this tax cut extension America currently has no problem in this area, the stock markets are up around twenty-percent from October of last year there is no problem for America's businesses in selling bonds and stocks. All this leads to the conclusion that Congress should limit this tax cut extension to Americans that almost certainly will spend the money meaning specifically that Congress should limit this tax cut extension to individuals with a yearly income of $175,000 and families with a yearly income of $250,000.


    Both parties need to chart a new course on how to pay for this legislation their current plans are stupid. The Democrats idea is too pay for this tax cut with a surtax on millionaires; the problem here is that the Democrats are wasting a needed mechanism for solving America's structural government financing problem with this approach. America is facing basically trillion dollar a year deficits as far as the eye can see and the only way to solve this crisis problem is to get wealthy Americans to pay more (specifically let the Bush tax cuts expire for the wealthy and lift the capital gains tax and dividend income tax rate to 25%) and cut entitlement spending but all this can only be done as part of a large deal, the grand bargain, that numerous individual and groups have said need to take place; the Democrats move here undermines this major move the country needs to make so frankly its stupid and should be dropped. The Republicans want to pay for this by putting a freeze on federal hiring and stopping cost of living raises for federal employees, these typical politician solutions to financial problems are unwise and irresponsible, many government agencies perform important and needed work you can't implement a policy that bans replacing people when they leave without negatively impacting the work they do and for stopping cost of living raises many federal workers are in the middle class and what they have been without a cost of living raise for a year or two now that isn't right toward these Americans stopping COLAs they have families to raise, federal payrolls are too high and some federal employees are paid too much but fixing this problem obviously is a task that specific Congressional oversight committees should be doing Congress shouldn't be trying to solve it using a meat cleaver.



    Why doesn't Congress try to pay for this legislation with a temporary natural gas well head tax. This whole industry has changed with the widespread use of horizontal and fracking drilling used on shale geologic structures within the continental U.S. that contain natural gas. These new drilling techniques have turned the industry on its head supply is so out of whack with demand that the price of natural gas are at historic lows, the Wall Street Journal reported two days ago that natural gas has dropped 39% over the past year, the supply-demand curve is so distorted that the natural gas production industry is deliberately and dramatically reining in growth. America is seeing electricity producers turn to natural-gas power generation and industrial manufactures are planning to locate plants in the U.S. to avail themselves of the low price of natural gas relative to off-shore locations, the WSJ reported that in Asia manufactures can pay six times the U.S price for natural gas. An accurate assessment will conclude that in seven to ten years from now the dramatic price advantage of natural gas available in the U.S. will disappear, not only from increased demand alluded to in the U.S. but also domestic natural gas producers in the U.S. will create or see created in the U.S. Liquefied Natural Gas plants which will turn U.S. domestically produced natural gas into liquid form so it can be shipped to foreign markets, the bottom line is that over this time frame the balance in the supply demand relationship will become more even so the price of natural gas will rise to become more in line with world markets. So why doesn't the federal government come in and put a temporary say seven year tax on natural gas production as a matter of fact they an set it up so the tax rate lowers as the price of natural gas rises; this is also good public policy because it lets end users of natural gas know who will see the tax reflected in the price they pay for the natural gas the long-term price of natural gas so they can plan wisely the extent they want to use natural gas as their source of energy. To you Republicans that are having convulsions over this idea of increasing taxes in America consider that the Republicans that control the Governor's Office as well as both chambers of the Pennsylvania legislature and are considered a solidly conservative Republican Party just in the past week passed legislation increasing fees on natural gas production in the state of PA. Although Republican officials albeit holding their nose will object to this revenue raising being characterized as a tax, the fact that it is projected in the first year to raise $180 million dollars and a significant part of the money will be spent in non-drilling areas of PA ordinary people will characterize this as a tax and this is the most important thing to focus on for you offended Republicans, the world isn't ending for the Republican Party in Pennsylvania over this, in fact, they probably have saved a few Republican heads from being chopped off over this issue come the next elections!
     
  2. Full-Auto
    Offline

    Full-Auto Gold Member

    Joined:
    Jun 13, 2009
    Messages:
    13,555
    Thanks Received:
    1,614
    Trophy Points:
    153
    Ratings:
    +1,615
    Good luck.

    By 2016 we will exceed 20 trillion in debt. Democrats will continue to call any cut extreme. They will insist on under funding SS. They will not explain you will get less at retirement as a result. Repubs are not any better. They have folded at every opportunity to make a difference. They will fold at the new debt ceiling request.

    Anyone that thinks the US will actually start paying down the debt, speak up. tell us why? When?
     
  3. AmericaFirst88
    Offline

    AmericaFirst88 Member

    Joined:
    Feb 10, 2012
    Messages:
    50
    Thanks Received:
    11
    Trophy Points:
    6
    Ratings:
    +11
    Its odd how the Republicans are the ones who are saying this tax cut can no longer be extended, because its not 'paid for' elsewhere. Yet they refuse to raise taxes on the wealthy? I guess tax cuts are only for the wealthy now too. Because you can never have too much cash sitting in a bank doing nothing but collecting interest.
     
  4. Full-Auto
    Offline

    Full-Auto Gold Member

    Joined:
    Jun 13, 2009
    Messages:
    13,555
    Thanks Received:
    1,614
    Trophy Points:
    153
    Ratings:
    +1,615
    This is not an income tax cut.

    At least understand that bit. Then understand that cut continues to cripple a dead fund. SS.

    This cut has proven ineffective.

    You do understand simple economics, yes or no?
     
    • Thank You! Thank You! x 1
  5. Oddball
    Offline

    Oddball BANNED Supporting Member

    Joined:
    Jan 3, 2009
    Messages:
    41,428
    Thanks Received:
    8,397
    Trophy Points:
    0
    Location:
    Drinking wine, eating cheese, catching rays
    Ratings:
    +8,409
    Right...Because we all know that you can only "pay for" a tax cut (absolutely preposterous phrasing, which presumes all your money belongs to the politicians) over here by raising taxes over there.

    Oh, wait, I have it....How about cutting spending?
     
    • Thank You! Thank You! x 2
  6. Rozman
    Offline

    Rozman Gold Member Supporting Member

    Joined:
    Sep 18, 2009
    Messages:
    16,573
    Thanks Received:
    3,060
    Trophy Points:
    290
    Location:
    Brooklyn,NY
    Ratings:
    +6,687
    Libs believe money we make belongs to government first
    and we should be thankful they "allow" us to keep some of it.
     
    • Thank You! Thank You! x 1
  7. Full-Auto
    Offline

    Full-Auto Gold Member

    Joined:
    Jun 13, 2009
    Messages:
    13,555
    Thanks Received:
    1,614
    Trophy Points:
    153
    Ratings:
    +1,615
    Good point.

    At the beginning of this admin we had a democrat suggest that all 401ks be invested in government.

    It went no where fast but they will bring it up again and the useful idiots will cheer.
     
  8. konradv
    Online

    konradv Gold Member

    Joined:
    Mar 23, 2010
    Messages:
    22,549
    Thanks Received:
    2,554
    Trophy Points:
    280
    Location:
    Baltimore
    Ratings:
    +5,662
    Strawman much?
     
  9. konradv
    Online

    konradv Gold Member

    Joined:
    Mar 23, 2010
    Messages:
    22,549
    Thanks Received:
    2,554
    Trophy Points:
    280
    Location:
    Baltimore
    Ratings:
    +5,662
    Dittohead
     
  10. Full-Auto
    Offline

    Full-Auto Gold Member

    Joined:
    Jun 13, 2009
    Messages:
    13,555
    Thanks Received:
    1,614
    Trophy Points:
    153
    Ratings:
    +1,615
    You can allow yourself to make sense at any time...............
     

Share This Page