Senate extends “gimmick” payroll tax cuts that’s blowing a hole in social security creating a bigger problem.

Here’s another case of politicos kicking the can down the road.

NY Times reports Senate leaders said on Friday night that they had reached a deal that would extend a payroll tax cut for two months — falling far short of the yearlong extension they had been seeking. The agreement would also speed the decision process for the construction of an oil pipeline from Canada to the Gulf Coast, a provision necessary to win over Republicans who opposed the tax break.

More here

Here’s one thing you have to understand about Obama cutting payroll taxing, it was all about politics, not stimulating the economy. If Obama and the Democrats really wanted to stimulate the economy, he should’ve cut individual tax rates across the board like Kennedy, Reagan and Bush did that resulted in booming economy every time it was tried.

But, Obama doesn’t believe in that because it wouldn’t allow him to bash successful citizens with his class rhetoric.



Cutting the payroll tax was a political gimmick because it’s not simulative and the last 3 years proves it. What it did do is allow Democrats demagogue the issue against the GOP when the deadline to extend the payroll tax cut comes around. Obama and the Dems weren’t interested in helping people who are struggling; they were just playing a cynical political game.

But, the biggest reason why cutting payroll taxes are a bad idea is that it blows a huge hole in the social security trust fund. So in addition to less working people paying into social security for the benefits of a growing number of retirees, Obama has made it worse by cutting the revenue stream.

Of course the mainstream media is reporting any of this like the good PR reps that they are. 

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