Money & The Economy

Payroll Tax Debate: The Truth Comes Out in the U.S. Senate

On Thursday, Dec.1st the battle to extend the payroll tax holiday and unemployment insurance benefits reached new heights in the Senate, as not only did Republicans battle Democrats, but both parties saw raging fights within their own ranks over how to pay for the extensions, along with whether the tax holiday should even be extended at all. In the end, once again, nothing was accomplished

The Senate Republican bill won only 20 votes, less than half the GOP conference. The Democratic bill also went down in flames, 51-49, failing to muster the 60 votes needed for passage. The debates included back and forth rhetoric on whether the tax holiday actually has ever created jobs or improved the economy, the fact that the Democrat’s bill was weakening Seniors Social Security programs by lessening revenues. Here is a common sense question that will never be asked in the elitist halls of Congress during these debates: Why not give the holiday tax break to all of America’s workers by cutting federal payroll taxes, instead of SSI payroll taxes? (fica) That way you give the workers more money in their pocket, while at the same time keep funds coming into an already under-funded SSI program.

The Truth: Senate Republican leaders introduced a bill that would keep the payroll tax rate at its current level for another year. The cost is roughly $120 billion. Senate Republicans would offset most of the cost by freezing the pay of federal employees through 2015 and gradually reducing the federal work force by 10 percent. In addition, Senate Republican leaders would go after “millionaires and billionaires,” not by raising their taxes but by making them ineligible for unemployment compensation and food stamps and increasing their Medicare premiums. ← These facts are basically being ignored in the media today.

Fact: The Congressional Budget Office said the Republican bill would reduce federal deficits by $111 billion, mainly because of the pay freeze and the reduction in the federal work force.

Senate Democratic leaders want a deeper temporary reduction in Social Security payroll taxes. They would provide payroll tax relief to employers as well as employees. And they would offset the cost with a 3.25 percent surtax on modified adjusted gross income in excess of $1 million.  Once again, instead of working with Republicans to get our out- of – control spending under control, Liberal Democrats in the Senate want to grow government by taxing Americans more. Spend, spend spend is all these tyrants want to do, with no regards to fiscal sanity in any way shape or form. Here are a few quotes from the Senate payroll tax debate yesterday, that may surprise some of our readers:

After House Speaker Boehner alluded to the benefits of the tax holiday as, “I don’t think there’s any question that the payroll tax relief, in fact, helps the economy. You’re allowing more Americans, frankly, every working American, to keep more of their money in their pocket,” the Speaker added. “Frankly, that’s a good thing.”

To which, Senator Orin Hatch then responded, “If they could show me a lot of increases in jobs or something, that’s a different matter,” Sen. Orrin Hatch of Utah, the ranking Republican on the Finance Committee, said Wednesday. “But I don’t think they’ve been able to show that.”

Then we have a strong statement from Senate Democrat Joe Manchin: “Letting Americans believe that we don’t have to pay for Social Security is wrong. It is dead wrong,” Manchin said. “And I will not vote for it. Period. Under any condition.” Finally, common sense rears it’s long-forgotten head up in the Senate!

And finally, Senator Mark Krik (R – Ill) threw in another dose of reality: “I don’t think seniors should be based on a ‘trust us’ policy, that we’ll pay you back,” Kirk added. “And I would actually say even the political vote is to vote against this so that you’re for Social Security.”

Today, the House is supposed to come out with their own version of the tax holiday and unemployment benefits extension bill. The vicious cycle of the irresponsible debt-spending versus a fiscally responsible government-political-battle rages on with exactly no Presidential leadership anywhere to be found. Barack Obama is too busy waging class warfare in campaign fund-raising speeches on the taxpayers dime for the 70th time in 2011,… to actually concern himself with doing his job as President of the United States.

2012 just can’t get here fast enough!

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Rich Mitchell

Rich Mitchell is the editor-in-chief of Conservative Daily News and the president of Bald Eagle Media, LLC. His posts may contain opinions that are his own and are not necessarily shared by Bald Eagle Media, CDN, staff or .. much of anyone else. Find him on twitter, facebook and

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One Comment

  1. This is ugly. Whoever thought “free trade” was a good idea didn’t follow through on how that sudden loss in revenue would effect the tax payer.

    This entire battle over the payroll tax holiday is smoke and mirrors. Aside from the obvious political ramifications for Obama in a political year, the republicans are playing a democrat game of chicken. It has nothing to do with the economy… it sucks and this won’t make it suck any less… and has everything to do with buying middle-class votes for Obama. What does this mean for republicans? Change the game. They should present a bill titled “Permanent Tax Cut for the Working American” by lowering federal tax withholding, paid for by reducing the size of the federal government… which don’t forget… is already funded by the failure of the super committee to hammer out spending cuts.

    Republicans have the upper hand here in a election year. Bending Obama over a barrel is the only language he understands.

    1. Max,

      Ugly about sums this circus up in a nutshell. It confounds me more evey day how the public can believe that it is Republicans stopping Obama’s fake jobs/Union graft bill.The Senate has blocked and obstructed any chance at progress simply to protect vulnerable Liberal-fake democrats in the 2012 elections. The debt-spending continues. The fact is that half of the so-called Reps in Congress do not read the bills they vote on. The other half appears too stupid to understand the ones they do read. This is the result of Party-line voting that includes a heavy does of racial-bedwetters posing as voters to install even more ignorant morons who can’t add 2 and 2 into our Congress. In a perfect storm of an election year, the GOP is blowing off the fiscally sane voters by waffling on forcing budget cuts. SHUT DOWN the whole circus! This will never stop until we the people decide to take a stand. The only way to do that would be a national call for stopping sending them any more money. No TAXES will be paid, until they bring the budget down to spending what they take in. Of course that would take actual courage and resolve from we the people (just like when we declared our Independence from the British and then fought tooth and nail to achieve it) and I see America as being a nation of politically correct cowards today that would NEVER take that stand against these big government tyrants.

      The only question left to ponder for future generations of Americans who will slam into the coming Greek-style debt-wall at 120 MPH? Got Ammo? I hope I can be around to witness the current generation of 20 year olds who vote for Obama, when they end up standing in bread lines after “The State” take 80% of their paychecks to pay off the national debt. There is no excuse for not becoming an informed voter today with all the information on the internet. NONE.

      1. “Got Ammo?” Love that line. It pays to be a good boy scout, living up to the motto.

        The only thing keeping our country on-track is 84% employment. The U3 unemployed (9%) plus the U6 unemployed (totaling 16%) are the ones that truly have a grievance with government. For right and wrong reasons. These mainly represent the OWS folks, a mixed bag of socially discontent people, most have been propagandized to believe banks are the problem, they are owed a lifestyle funded by the rich, and are just realizing their college degree in “community service” isn’t a marketable skill, and they owe 80K for it. Classic dummies, but you can bet their parents haven’t changed their bedrooms since they left home, and those rooms are stuffed with participation trophies.

        My point is, Obama is casting his re-election bid on social unrest, on the OWS anti-capitalism movement, hoping the homeless will vote November 2012, so they can experience 4 more years of social unrest. Obama, in his own words, said if he couldn’t fix the economy in 3 years he shouldn’t be re-elected. If Bush had said that, the MSM would be playing that sound bit every day on the news. But the media has allowed Obama to shift blame on republicans, the tea party, the rich, to divert attention away from the colossal failure of Presidential leadership.

        I dislike Chris Matthews, but he said something today that should be in tomorrows news. He was talking about his book about JFK, and comparing JFK to Obama. Basically, he tore Obama a new a-ahole, criticized him for not having any plan to get this country back on its feet, and said Obama is all about “He,” in comparison to JFK who was all about “We.” But look… this is the guy Matthews will vote for again, knowing he is a failure, and perhaps questioning why the Democrats aren’t running another candidate. I think it’s because of Obama’s skin color… they don’t want to be seen as the party that squashed Obama’s presidency.

  2. The Lib-media is just as responsible for the Obama class warfare lies as Obama and the OWS misfits of the .00001%. This nasty cycle of Liberal-fake Democrats busting the budgets only to leave the Conservatives ( notice that does not say Repubs there) the mess to clean up has repeated itself throughout history. Tap Tap tap… Waiting for the Media Matters misfits to jump in here with the Clinton surplus lies any minute now. Clinton didn’t have the fake Democrats running both houses at the time, plus welfare rolls were reduced by 50% by the year 1998, producing more federal revenues. At the same time Clinton changed the criteria for the very same EITC that illegals used to bilk the U.S. taxpayer out of 4.2 billion taxpayer dollars with in 2010. Add that total to the welfare class that never worked a day in their lives getting EITC checks, and the Clinton truths of how his sneaky vote-pandering was done with future tax dollars, comes to light. The EITC actually raised taxes on the real working middle class in 1990 and 1993.

    That’s a very interesting item on Mathews ripping the chosen one a new orifice, I’ll have to look into that.Could you imagine JFK popping back up today and what he would have to say about Barack Hussein Obama? JFK may have liked the ladies, but no one can ever doubt his Patriotism and love for America. Can anyone say that about Obama today? This country has become so cowardly PC that people are being told they can’t call Obama the anti-American he has proven to be his entire life. He is a cowardly fake academic- community organizer, who is pushing the Karl Marx/Saul Alinsky/Bill Ayers model of collapsing America. Also of fact: The green-weenies are just being used as a convenient scapegoat in Obama’s stopping the Keystone XL pipeline. He wants the U.S. to buy oil from the middle east and his pal Hugo Chavez, Brazil included. Buying foreign oil is the ultimate form of wealth redistribution from the U.S to the third world ratholes who ‘;s 7th century ideology prevents them from developing their own economies. How’s that for a rant?

    1. Rants are fine when they speak truth.

      Apparently this isn’t the first time Matthews has expressed discontent with Obama. This is from November:

      What I heard this morning was on the radio, he was speaking to a group in California comparing Obama to JFK. Probably a book tour gig. He was much harsher today. If I can find it I’ll post it here.

      I truly believe repubs should bring up Obama’s failures and ask the American people why democrats aren’t running another candidate? I’d bet dollars to dimes top democrats have had this discussion, but they won’t challenge a black president. How could they? After the pedestal they put him on.

      1. Hello Max,

        Hat-tip for the leftists….bring your utopian trash into here @CDN, and older, experienced folks like Max and I shall proceed to give you the free lessons on real American history and just why the heck America can support 50% of the current non-taxpaying Democrat- voting youth. End game- negative balance in the bank. Is that good for your future?

        1. Ain’t that the truth. If their brains were half the size of a mustard seed they would be selling capitalism on street corners knowing full well more capitalism = fatter welfare checks. When they have killed the golden goose, all that is left is what Obama squeezes out and into a commode, and twice as crappy.

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