12.09.2011 original publish date
09.06.2012 replaced broken links with PDF files
Instant Analysis: Obama Argued For, Then Rejects Payroll Tax Proposal
original article written by Net Advisor™
The White House (President Obama) had been arguing for a payroll tax extension due to expire at the end of December 2011.
“Speaking at the White House, Obama said the tax cut needs to be acted upon before they expire at the end of this month for the sake of millions of Americans and the weak U.S. economy.”
— Source: Reuters, 12-05-2011
Further, the President then pinned the entire payroll tax cut on whom else? — We’ll, Bush isn’t in office anymore so it’s just the Republicans now.
Obama recently addressed the payroll tax issue to a bunch of high school’ers – yes, high school students.
“If lawmakers vote “no, your taxes go up. Yes, you get a tax cut,” Obama told the crowd. “Which way do you think Congress should vote?”
“Don’t be a Grinch. Don’t vote to raise taxes on working Americans during the holidays,” he said during his speech at a Manchester high school.”
— Barack Obama (Source: MS-NBC (PDF), 11-22-2011)
Video: President’s address in Scranton, Pennsylvania, 11-30-2011
So, the payroll tax extension bill was written, PASSED by the (Republican controlled) House so what happened next?
On 12-09-2011, President Obama REJECTED that so important payroll tax extension he was asking for.
This of course begs the question. The Question: Why did the President argue on TV, and on the campaign trail to continue the payroll tax extension (part of the Obama “Stimulus” Program), then reject that extension that is so important to middle-class Americans as Obama claims?
Here’s is the answer.
The payroll tax extension was not done the way Obama wanted it done – meaning it was not done HIS way.
“It is important that the overall package meet the standards the president has set.”
— Source: White House spokesman Jay Carney (Source: Reuters, 12-09-2011)
There is it. The White House just publicly admitted that it wants Congress to write the laws that the President wants at HIS sole and undisputed discretion. Anything short of that, is just not “fair?” And if Congress (the Republicans) don’t pass my (Obama’s) laws, they (the Republicans) are of course called “obstructionists.”
In the view of the White House, Congress is apparently just a Constitutional obstacle that gets in the way of “real progress” – that was sarcasm (and citing a liberal column).
Here is another take on this from a Constitutional viewpoint, without (as much sarcasm):
The White House has told the Legislative Branch (The House of Representatives) how to legislate, and if it isn’t done the President’s way, then it’s just “not fair.” Everyone with me so far?
If one has never read the Constitution, please take some time to know what are the laws of the Land.
Again, the President had been arguing for this payroll tax cut which would save average family earning about $50,000 a year before taxes about $19.23 a week or $1,000 less in taxes per year. The President wants this (or so we thought), not because he is a “tax cutter” (reality check here) but because in an election year you don’t want to raise taxes on mass voters.
The AMT Tax (affects 26 million people – mostly the middle class), Unemployment Benefits (affecting about 4.62 million unemployed persons) and the “Bush tax cuts” (2001, 2003, 2006) – that cut taxes for everyone are also set to expire so that will be an interesting debate.
For Against, For Against
The President previously argued AGAINST extending the “Bush Tax Cuts”… until.
The November 2010 Mid-term Elections were the biggest ousting of a single political party since 1928. The President lost control of the legislative body (The House). Now, Obama was in favor of extending the Bush Tax Cuts.
Since then, the President has claimed on the campaign trail that he lowered taxes for everyone….
“Your taxes today – the average middle class family – are lower than when I took office.”
— Barack Obama at President’s address in Scranton, Pennsylvania, 11-30-2011, (Source: Politico)
This of course is not true. The Senate (controlled by the more liberal Democrats) initially blocked the Payroll Tax Bill, not solely the Republicans as Obama claimed. And on tax cuts, the President just kept the same tax brackets in place as they have been since 2002.
Payroll Tax Cut Impacts Social Security
The payroll tax cut will also increase the deficit as that leaves less money to fund Social Security obligations. The solution to this is to grow the economy (not by more government spending but by less restrictive regulations on business (ObamaCare, FINREG, etc.) and cut government spending to off-set the deficit increase. This free up business to develop with less red-tape in order to create jobs and cut government spending has not been part of this Administration’s ideology when it comes to practice.
Ending Unemployment Benefits Decreases the Official Unemployment Rate
If government does not extend unemployment benefits (again), those who no longer receive such benefits will drop off the official unemployment numbers. The result here will be a lower unemployment rate. Why? Because those who don’t receive government assistance in the area of unemployment benefits are no longer counted as being unemployed, even if in fact one is still unemployed. This is the ongoing manipulation of government math we have been discussing since 2010.
Republican Obstructionism?
One last thing about the rhetoric of “Republican Obstructionism” chanted by the White House and the general Left. The White House and the political left controlled both Houses of Congress for 2 years unopposed by any party.
Result: Unemployment went up, the deficit soared.
Voters Send in a Party to Obstruct the Left’s Never Ending Spending Spree
Frustrated by the results of the Obama and company’s failed stimulus, voter’s threw out the Democrat controlled House of Representatives and inserted Republican and Tea Party sympathizers.
The goals: Control government spending, stop the deficit from going out of control, stop all new taxes, return to basic Constitutional governing with checks and balances.
The public sent Republicans, Independents, and the Tea Party to DC in November 2010 for the purpose to obstruct the Obama Administration’s failed policies. That is what voters wanted until the next election whereby a new leader better put the country back on the right track. The right track to prosperity is not 4,200 new regulations, forced government healthcare, more taxes, higher taxes, more government dependency, more spending, or more deficits. None of this ideology creates jobs or can grow an economy. If one is not sure about this, take a look at how Greece has ran its government over the last 50+ years and see where they are now.
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Image may be subject to copyright from public domain. original source not known.
Video courtesy: AP
Article content copyright © 2011 NetAdvisor™; revised copyright © 2012 NetAdvisor.org®
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