Thursday, December 22, 2011

The Payroll Tax Issue, Simply Explained

With all the verbiage and posturing going on,(a deliberate attempt to obscure things by the democrats and their media allies, as far as I'm concerned) I think a simple and direct explanation of this issue is in order.

The legislation in question actually has three components. Needless to say, the president and the Democrats are only talking about one of them.

The first one, the one that's getting all the attention is a payroll tax holiday extension for an additional two months.

The second part is completing the Keystone Pipeline to carry 700,000 barrels of crude per day from the Canadian oil sands in Alberta to refineries in Port Arthur, Texas. This would provide an estimated 20,000 American jobs and lower prices at the pump.The president, of course, says he'll veto it, citing global warming and environmental issues.

The third part involves another Federal extension of unemployment benefits.

A number of Republicans in the Senate stupidly approved a bill that would extend the payroll tax for another two months, allow President Obama the leeway to approve the pipeline construction at his discretion, (which means it won't happen) and provides funding for another federal unemployment extension.

The GOP-dominated House refused to go along with this, as Speaker Boehner showed some courage for a change. The House wants a compromise that would extend the payroll tax holiday for an entire year,would force President Obama to veto the Pipeline bill, and allow the extension of unemployment benefits.

The President and the Democrats have so far refused to sit down and negotiate any of this. The last thing the president and his allies want, aside from lower gas prices is a long term tax cut, both of which provide less revenues for President Obama's domestic agenda.

The House Republicans made a huge PR error in not making the pipeline the sticking point rather than the payroll tax holiday. Instead, they should have compared the jobs and the savings at the pump to the estimated $40 per paycheck a family of four with a $50,000 income would save (about $160 total) as compared to the jobs and the more permanent lowering of gas prices, goods and services. To make it even simpler, they could have upped the ante and said "President Obama wants to save you about $160 for two months. We want to save you $1,040 by extending the tax holiday for a full year, plus the benefit of lower gas prices at the pump. Which would you rather have?"

That's what's going on,in a nutshell.I'm frankly amazed that the GOP leadership can't explain that for some reason.

Perhaps they ought to hire me in some capacity.

UPDATE, 2:00PM PST : I see where the House Republican leadership caved in completely. Idiots. And gutless ones at that.

please helps me write more gooder!

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