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What you aren’t being informed about the payroll tax holiday (temporary) President Obama signed into law last December (2010) is how it raids the trust fund of Social Security. Social Security is the corner-stone of Democratic politics. The proverbial third rail that no one dare touch.
The law reduced workers‘ Social Security taxes by 2%. Workers normally pay 6.2% on earnings, the new legislation made it 4.2%. At the time the White House used an example of a single mother of two with $16,900 in earnings. She saved $28 a month under the Tax Holiday or $338 per year. Now the White House uses the hypothetical employee earning $50,000 a year to scare the public into thinking the average taxpayer will pay $1000 a year more in taxes. Deceptive?
Here is the true deception; according to Senator Jerry Moran (KS) who sits on the Senate Banking, Housing & Urban Affairs Committee, that 2% in savings is actually hurting the Social Security Trust Fund by reducing the payments into it by $120 billion dollars (White House numbers). So can they have it both ways?
Funding Social Security now to make sure its there in the future when lower-income workers may really need it or rob Social Security now to pay all workers now for votes in the next election. Isn’t vote-buying illegal?
No compromise, no tax holiday. Where is real tax and entitlement reform and where are the adults we elected to do the right thing, make the tough decisions to get the country back on track? Ask your local news media why they haven’t covered the secret about the Tax Holiday that President Obama is so adamant about getting passed now.
