This Kind Of Logic Makes My Head Hurt

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John Hinderaker at Power Line posted an article yesterday about Vice-President Joe Biden's comments regarding the payroll tax cuts.  The Vice-President has stated that "Payroll tax cut will create jobs."   Mr. Hinderaker points out some of the conclusions we can draw from that statement.  If the payroll tax cut will create jobs, what impact was the tax having on unemployment before it was cut and what impact will restoring it in two years have?  If the tax was a drag on the economy before it was cut, won't it be a drag on the economy when it is restored?  Hmmmm.

The article reports:

"But wait, there's more! This wonderful tax cut, presumably unlike bad Republican tax cuts, won't increase the deficit at all! That's because we're going to restore the tax in two years, see....and in the meantime, see, Uncle will just apply general revenues to the Social Security Trust Fund [sic] so Bubba doesn't have to worry about that either! I am a bit confused, though, Joe....when we restore the payroll tax cut we won't actually be recovering the foregone payroll tax revenue from the two year period of the cut, will we? And we're not increasing other taxes --- we're preserving all of the Bush tax cuts!! --- or reducing spending.....so either there is a large revenue hole for the two year period and perforce an increase in the deficit....OR we will claw back the cut in which case what possible economic stimulus effect will there be if Bubba has to pay back the payroll tax holiday on top of the restored payroll tax going forward ? Help me out here, Joe....."

I'm still trying to figure out why people who have been screaming that Social Security is going broke are willing to take more money away from it.  Could it be that in the future they will blame the coming financial woes of Social Security on this tax cut to avoid admitting that they have been stealing money from Social Security funds since the 1960's?

The article comments on Social Security:

"And I love the sly reference to "[c]critics [who] have been spreading misinformation that the payroll tax cut will threaten the solvency of Social Security". And who would those "critics" be? The left! Democrats! The Obama administration's putative supporters, that's who! And, Joe, thanks for spreading the disinformation about the "general revenues" going "into" the Trust Fund [sic], too. But, admittedly, here you do have a point--"the payroll tax cut will have no financial impact on Social Security"--but that's because, as I am sure you know, Joe, the whole funding side of Social Security is a sham anyway! There is no "Trust Fund" in any meaningful sense and Social Security is more-or-less bankrupt and insolvent on an actuarial basis already, so it couldn't be affected."

With the advent of the Tea Party, we have begun to get some of the influence of special interest groups out of Congress.  It will take at least two more elections to finish the process.  At that point, the American people may have the opportunity to get their country back!

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This page contains a single entry by Granny G published on January 14, 2011 1:52 PM.

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