Yesterday Fox News posted an article detailing the Democrat’s reaction to President Trump’s suggested payroll tax cut. The tax cut is designed to counter some of the economic losses caused by fears over the coronavirus.
The article notes:
Democrats are lining up to condemn President Trump’s proposal to eliminate payroll taxes amid the coronavirus outbreak, even though many of them were lock-step in supporting former President Obama’s two-percent payroll tax cut in 2010.
The apparent flip-flop came as stocks rebounded on Tuesday on news of the president’s coronavirus initiatives, with the Dow posting its third-biggest point gain in history. Trump has called for a “dramatic” payroll tax cut, and Fox News is told there has been consideration of suspending the payroll tax for three months, through the fall, or even through the end of the year.
The article notes the Democrats’ previous stand on this issue:
House Speaker Nancy Pelosi, D-Calif., is working with Democratic leaders on their own stimulus package, and has suggested that a payroll cut likely won’t be included because it amounts to “tax cuts for major corporations.”
However, in a 2011 press release, Pelosi called a brief extension of Obama’s payroll tax cut a “victory for all Americans” and said it would put “nearly $40 per paycheck in the pockets of the average family.”
“Today is a victory for all Americans – for the security of our middle class, for the health of our seniors, and for economic growth and job creation,” Pelosi said at the time. “The American people spoke out clearly and, thanks to President Obama’s leadership, 160 million Americans will continue to receive their payroll tax cut – nearly $40 per paycheck in the pockets of the average family. I salute the work of the unified House Democratic caucus on behalf of the American people.”
The article concludes:
“According to those knowledgeable about the events that played out over less than a week, the agreement was the product of a fast-paced series of telephone contacts, conference calls and consultations with Congressional leaders,” the Times wrote. “A critical negotiation on Sunday led to a surprise cut in employee payroll taxes as the men sought to wrap up the deal.”
For Republicans, the sudden change in tone on payroll taxes as a means of economic stimulus was evidence of election-year opportunism.
“Like clockwork, Democrats never miss an opportunity to oppose President Trump,” Republican National Committee spokesperson Steve Guest told Fox News.
As for the new proposal on Capitol Hill, a source familiar with the proposal tells Fox News that addressing the Trump administration’s payroll tax proposal is “the fastest possible way” to address economic concerns. The source said that crafting proposals such as “unemployment insurance and dropping money out of helicopters” takes months to engineer. But the payroll tax could hit immediately – especially if they include both employers and employees.
The reluctance among some Republicans is a payroll tax cut could explode the deficit. However, Fox News is told that there are concerns that if Congress waits to act amid the declining economy, an even bigger hit to the deficit might result — as large as “a $1 trillion direct score on the deficit.”
Unfortunately the game is played on both sides. I believe there may be a handful of people in Congress who actually put the welfare of the country ahead of the welfare of their political party. I just wish there were more of them. As a country, we need to learn to work together in times of crisis–not simply use the crisis for political gain.