Payroll Tax Holiday- The Secret Tax on Social Security

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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.

Obama Outlines Medicare Solvency Since H.C. Reform – True or False?

The President once again has ignored the facts and is drinking his own cool-aid. While the Latest report from the Medicare Trustees says they have added 12 years of solvency to Medicare their own Chief Actuary says that’s not true and those are fraudulent numbers. Hidden in the footnotes in the appendix of this report he says the savings that the Obama Administration is claiming are “extremely unlikely to occur.” Fact: You can not add 30,000,000 +/- more people to the government system without increasing costs.

But you won’t hear about the footnotes on ABC,CBS,NBC or their cable affiliates. Maybe CNN, but I doubt it.

He also talks about not cutting benefits from our seniors, but they cut $500,000,000,000 (billion) from the fund partly by cutting Medicare Advantage a very popular program. He touts the $3.85 per week savings in medicare premiums for seniors. $3.85, yep that almost enough for a can of cat food.

I do agree with the President on one part of his video speech “…we are no longer accepting business as usual”. No I am not. Where will you be on November 2, 2010?

DOJ admits Individual Mandate is a Tax

In filings by the Department of Justice while trying to fend off the twenty or so lawsuits brought by the States, said that the Individual Mandate forcing Americans to purchase health insurance is a tax.  Also in the filing  they argue thast Congress has a right to do so under the power to raise revenue through taxes clause.

This flies in the face of what President Obama argued on national television when George Stephanopolis questioned him about it.

So Mr. President,  did you lie or were just unaware that you couldn’t push socialized medicine through if the People knew it was a Tax?

Transparency?  Your whole administration is become transparent. Watch this video, the last 60 seconds or so is crucial.