I was listening to guy: Clinton says tax cut deal brokered by Obama is a good thing. And I said, "alright, Clinton, you must know what you're talking about".

Then I read this article: Tax cut bill to reduce SS payroll tax to 4.2%. Then I thought, "oh no, this is not as good as Obama and Clinton made it sound".

Now if the Making Work Pay tax cut/credit is being replaced with the SS payroll tax cut, then I think the bill shouldn't pass. As one Democrat pointed out, it will be the slippery slope to the end of SS. Also, looking at the numbers comparing the two and also looking at the agenda of the Tea Party and "fiscally conservative" Republicans, it seems that this is the wrong tax cut to give because it does not promote federal spending. If anything, it encourages it.

I could be wrong. But, IMO, this bill should fail. Also, IMO, politicians need to grow some balls and stop letting businesses hold the country ransom over tax cuts.

What's with all these politics??!!

All tax problems solved...

The flat tax is a joke.

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I agree that the SS payroll tax cut is the slippery slope to the end of SS.

Have you seen this?

Quote:

Original post by LessBread The flat tax is a joke.

Who said anything about the flat tax, read the site before making assumptions.

Quote:

Original post by BronzeBeard Quote: Original post by LessBread The flat tax is a joke. Who said anything about the flat tax, read the site before making assumptions.

From the article :

Gale analyzed a national sales tax (though different from the FairTax in several aspects[8][46]) and reported that the overall tax burden on middle-income Americans would increase while the tax burden on the top 1 percent would drop.[7] A study by the Beacon Hill Institute reported that the FairTax may have a negative effect on the well-being of mid-income earners for several years after implementation.[50] According to the President's Advisory Panel for Federal Tax Reform report, which compared the individual and corporate income tax (excluding other taxes the FairTax replaces) to a sales tax with rebate,[9][36] the percentage of federal taxes paid by those earning from $15,000–$50,000 would rise from 3.6 percent to 6.7 percent, while the burden on those earning more than $200,000 would fall from 53.5 percent to 45.9 percent.[9] The report states that the top 5 percent of earners would see their burden decrease from 58.6 percent to 37.4 percent.[9][58] FairTax supporters argue that replacing the regressive payroll tax (a 15.3 percent total tax—not included in the Tax Panel study[9][59]) greatly changes the tax distribution, and that the FairTax would relieve the tax burden on middle-class workers.



What exact problem is it solving?

Quote:

Original post by Spinoza Quote: Original post by BronzeBeard Quote: Original post by LessBread The flat tax is a joke. Who said anything about the flat tax, read the site before making assumptions. From the article : Gale analyzed a national sales tax (though different from the FairTax in several aspects[8][46]) and reported that the overall tax burden on middle-income Americans would increase while the tax burden on the top 1 percent would drop.[7] A study by the Beacon Hill Institute reported that the FairTax may have a negative effect on the well-being of mid-income earners for several years after implementation.[50] According to the President's Advisory Panel for Federal Tax Reform report, which compared the individual and corporate income tax (excluding other taxes the FairTax replaces) to a sales tax with rebate,[9][36] the percentage of federal taxes paid by those earning from $15,000–$50,000 would rise from 3.6 percent to 6.7 percent, while the burden on those earning more than $200,000 would fall from 53.5 percent to 45.9 percent.[9] The report states that the top 5 percent of earners would see their burden decrease from 58.6 percent to 37.4 percent.[9][58] FairTax supporters argue that replacing the regressive payroll tax (a 15.3 percent total tax—not included in the Tax Panel study[9][59]) greatly changes the tax distribution, and that the FairTax would relieve the tax burden on middle-class workers. What exact problem is it solving?

It is a revenue neutral tax that would simplify the tax code greatly, increase consumption, thus increasing revenue, as well decreases the power congress has over people via taxes...

What does that last line mean? Things like the OP linked to will never happen. Because we would have one very simple national sales tax that even the ignorant masses can understand and follow.


I would like to point out from what you are quoting...


Gale analyzed a national sales tax (though different from the FairTax in several aspects[8][46]) ...

According to the President's Advisory Panel for Federal Tax Reform report, which compared the individual and corporate income tax (excluding other taxes the FairTax replaces) to a sales tax with rebate,[9][36] the percentage of federal taxes paid by those earning FairTax supporters argue that replacing the regressive payroll tax (a 15.3 percent total tax—not included in the Tax Panel study[9][59]) greatly changes the tax distribution, and that the FairTax would relieve the tax burden on middle-class workers.

What exact problem is it solving?

It is a revenue neutral tax that would simplify the tax code greatly, increase consumption, thus increasing revenue, as well decreases the power congress has over people via taxes...

What does that last line mean? Things like the OP linked to will never happen. Because we would have one very simple national sales tax that even the ignorant masses can understand and follow.

1. Yay, its revenue neutral so we can have more debt as far as the eye can see.

2. Increase consumption? Yes because when the lower and middle income levels pay more taxes consumption will definitely go up.

3. Decrease the power of congress, because no congressman will get the bright idea that the big industry in their state should pay a different level than everyone else. Would the tax also apply to sale of primary residence? Say good-bye to the housing market. Yeah I see increased consumption and revenues written all over this idea. [sarcasm]

My big issue with the idea though is that it furthers the idea that the problem with taxes is the complexity of the tax code and it not being easy to collect. Tell me what you think a 'just' system of taxes is and then let’s go from there.

Quote:

Original post by LessBread The flat tax is a joke. I agree that the SS payroll tax cut is the slippery slope to the end of SS. Have you seen this?

I'm not even sure what "this" is telling me?

I don't know if it's a good idea as far as the economics of it are concerned, but I do think it could work out politically for the Democrats. Just look at the hypocrisy of the Republicans on this issue! They got elected partially by slamming the Dem's on the deficit, but in the end all they really cared about was getting their tax cut for the top income earners. Putting this deal into law will only confirm what everyone's been saying all along: The Republicans are out to make the rich richer.