Why are Republicans so eager to keep the Bush Tax cuts but have no interest in reducing our payroll tax?
if they care so much then why is a oil pipeline in the bill. It has nothing to do with our payroll tax.
- 8 years agoFavorite Answer
The payroll taxes are lower in the Bush tax cuts, the cuts you are talking about come out of the FICA, which means they are letting you pay less into the ponzi scheme we refer to as Social Security Insurance.
The Bush Tax cuts of 2001 did not lead to immediate growth of revenue- but after another tax law in 2003 was passed which accelerated the tax cuts and added more of them, the result was an explosion of revenue for the government, jumping from $2 trillion to $2.6 trillion in only 7 years.
All other things being equal and the logic being consistent to what was seen in earlier tax cuts, the implementation of the Bush Tax cuts led to an additional $600 billion a year in revenue for our federal government.
After a year of the FICA reductions, what has been the benefit? The economy is stagnant, the GDP continues to fall and we have 2.5 million less total jobs than we had in 2009. Republicans believe that regulations are killing the development of new jobs, and hence an economic recovery. More jobs means more people partaking of goods and services and more people paying taxes as seen during the early Bush years. The recession in 2007 was not brought about by the Bush tax cuts, it was the result of the housing bubble and the attendant derivative market made possible by government meddling in the market with predictable results.
So yes, the pipeline is in our national interest, the FICA reductions, not so much. But the Republicans were willing to compromise in order to get the pipeline for America. Not that I am not happy to keep whatever money the Federal Government sees fit to leave in my pockets because I can make better use of it than the central planners.Source(s): NYT and WSJ for the numbers.
- Uncle PennybagsLv 78 years ago
Haven't you been paying attention? The House GOP wants to extend the payroll tax cuts for 1 year, not just for 2 months like the Senate approved.
- Anonymous8 years ago
The Bush tax cuts DID reduce your payroll tax. If they are allowed to expire, your payroll taxes will increase to where they were under Clinton.
- margiLv 43 years ago
that's no longer as a selection of of a black and white difficulty as you think of. you are able to have it the two strategies if spending is decrease in different factors. that's some thing that the left which will in no way comprehend, because of the fact they pick entitlements and stimulus applications and bailouts and "funds for clunkers" and different issues that one and all cost money. greater tax isn't the only thank you to pay off a deficit, and that's why the left fails time and time returned. decreased government spending is the alternative way of paying down the deficit. this is the place the actual black and white comes into play. you have 2 concepts, shrink spending or develop taxes. the two way, there will be losers, and human beings who would be indignant...yet this is the question...which will effect greater human beings? And which will effect greater people who unquestionably pull their weight in society? Tax hikes will positively negatively impact greater human beings than reducing entitlement courses, to no longer point out, why might desire to we proceed to punish the human beings who artwork and not the human beings on the government dole? and not only the entitlements, government itself desires to step as much as the plate and take one for the gang...they might take pay cuts, earnings mark downs, and so on, yet they in no way will. CEO's and VPs of businesses will try this in complicated circumstances, why won't manage to our government?
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- 8 years ago
I'm pretty sure they want to reduce the payroll tax, they just want to do it for more than the 2 months that were proposed.
- Anonymous8 years ago
In their opinion middle class and poor should be paying more taxes. The last thing they really want to do is lower them.
They believe that wealthy people deserve everything they get and if you can't become wealthy then it's your own fault. Since they have moderate amounts of wealth, and all of their buddies too, they are mainly just looking out for themselves.
- Dave87gnLv 78 years ago
Bush tax cuts are for the rich- republicans are rich
Obama tax cuts are for working people- so they don't give a crap
- lilbizzy1861Lv 58 years ago
You're an Idiot. Do you actually read the news? They dont want to extend it for 60 days. They want to extend it longer *face palm*
- scott bLv 78 years ago
Because the Billionaires that pay their salaries don't get paychecks.
- 8 years ago
Because they are rich and want to keep being rich....its called ego my friend