Fica You! Another Futile, Ignorant Gesture by Obama

[CrusaderFrank]

Demonstrating his continued fundamental and total ignorance of free enterprise and the US economy, Obama has proposed a temporary reduction in the FICA tax for one year as a way to...what, boost the economy? What an epic fail. What a total double down Epic Fail.

Can you imagine a business going to a bank to apply for a loan and their plan is, "Lower FICA means people may buy more of our stuff"?

This is so sad and stupid and ignorant it must have come from either Robert Reich or Paul Krugman

Payroll-Tax Holiday Proposed by White House - WSJ.com

 

[boedicca]

Obama continues to prove that he doesn't understand that the real engine of the economy is entrepreneurship and business investment. Consumption is a function of the growth created by these.

The Audacity Of Economic Ignorance - Investors.com

 

[loosecannon]

Demonstrating his continued fundamental and total ignorance of free enterprise and the US economy, Obama has proposed a temporary reduction in the FICA tax for one year as a way to...what, boost the economy? What an epic fail. What a total double down Epic Fail.

Can you imagine a business going to a bank to apply for a loan and their plan is, "Lower FICA means people may buy more of our stuff"?

This is so sad and stupid and ignorant it must have come from either Robert Reich or Paul Krugman

Payroll-Tax Holiday Proposed by White House - WSJ.com

Team Obama is fucking nutz. As if his deficit wasn't bad enough now he wants to lower taxes again, in addition to the Bush tax cuts AND extend unemployment till death.

Hell, why not just declare a tax holiday till unemployment reaches 6%? Or drop money from planes?

 

[loosecannon]

Obama continues to prove that he doesn't understand that the real engine of the economy is entrepreneurship and business investment.

There has been next to zero business or infrastructure investment in the US since the 90's. NOT Obama's fault, it's wall street's fault and the go-go-globalization crowd's fault.

 

[Ragnar]

Deal or no deal? ABC/CNN say it's close, POLITICO says not so fast...

Report: Obama set to announce deal with GOP on tax cuts? Hot Air

And not just the tax cuts, either. According to ABC, CNN, and the Daily Caller, they’ve agreed to a two-year extension of all the cuts, a temporary two percent cut to the payroll tax and a temporary reduction of the estate tax to 35 percent (from 55 percent) with the first $5 million of every estate fully tax exempt. Obama’s price: The GOP agrees to extend unemployment benefits for another 13 months, which they were bound to do anyway as a simple matter of retail politics.

The One’s going to sell this as a grand stimulus package, but the left will go kicking and screaming all the way. In fact, they’re kicking already. CNN:

As currently crafted, the deal would prohibit amendments by either party, according to the source, who spoke on condition of not being identified by name…

“We won’t rubber stamp a deal between the White House and (Senate Minority Leader) Mitch McConnell,” one Democratic congressional source told CNN. “We want to make it clear. Don’t take our support for granted.”…

The Update also via HA...

Update: Politico claims there’s no deal yet, and also hears rumblings of Democratic dissent:

Senate Democrats, who want the rate set at 45 percent with a $3.5 million exemption, are likely to raise strong opposition to that proposal, according to a senior Democratic leadership aide.

Things that make you go "hmmm", or perhaps even "there's a-doin's afoot".

 

[CrusaderFrank]

This will help people pay the higher energy prices that Obama has inflicted on the economy

 

[william the wie]

I would suggest a look at Boedicca's (?) China bubble thread that is getting nasty faster than I thought possible.

 

[xmasldy]

The "tax holiday" is YOUR money that in theory goes to you SS (retirement). Yes it has been lowered BUT the federal tax withholding has increased due to the the Making Work Pay tax credit, expiration, which was enacted as part of the stimulus package, expired 12/31/2010. That credit allowed employees to earn a credit of 6.2% of wages, up to $400 total, with a phaseout for those earning over $75,000. The Making Work Pay credit expiration will mean an increase in taxes and thus a decrease in take-home pay – but for most people that decrease will be more than counteracted through the effects of the new "payroll tax cut". What a smokescreen, a workers "investment" toward retirement FICA , lowered. Federal tax, the worker will/would NEVER see , Uncle Sam's money, raised, a good option???? What a crock of crap.

 

[georgephillip]

Welcome to debt peonage.

Obama's $120 billion reduction in Social Security contributions fits well with his Bowles-Simpson (cat food) commission's plan to reduce Social Security and eventually privatize what remains for the benefit of Wall Street.

This latest cutback will accelerate the point at which SS moves into "negative equity" - "a calculation that ignores the option of restoring pension funding to the government’s general budget, where it would be paid out of progressively levied income tax and hence borne mainly by the wealthy, not by lower-income wage earners as a 'user fee.'”

Obama's Sellout...