GOP Caves on Extending Payroll Tax Cut

The GOP congressional leadership has caved on extending the payroll tax cut, set to expire at the end of February, for the rest of the year without offsetting budget cuts.

Much as they’d love to see the economy get worse this year to hurt President Obama’s re-election chances, they don’t want the blame for Americans seeing their taxes go up next month.

2 comments on “GOP Caves on Extending Payroll Tax Cut

  1. quinersdiner says:

    Unfortunately, the payroll tax cut does nothing to help the economy, as has been demonstrated over the past year. At the same time, it weakens social security and medicare at a time when these two entitlements need strengthening. A classic congressional lose/lose proposition.

    • I believe it does help the economy. With our economy based on 70% consumer spending, people having more money in their pockets has to help. And the payroll tax hits lower and middle income people especially hard, so they are more likely to spend the additional money rather than save it. If this tax weren’t extended, it would cut economic growth this year.

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