Cynical Synapse

Tue, 18 Oct 2011

Smoke and Mirrors Bus Tour: Tax Cuts That Aren’t

Filed under: Congress, Deceit, Economy, Employment, Government, Language, Politics, President, Stimulus, Taxes, Unemployment — cynicalsynapse @ 8:24 pm

Pres. Obama and his stealth bus

Pres. Obama has been traveling around North Carolina and Virginia in his Stealth Bus, the all-black $1.1 million Canadian-American customized luxery coach, the Death Star of the roads. Republicans claim the trip is a taxpayer-funded campaign tour, a charge the White House denies. Let’s face it, anything a politician—of any party or persuasion—does or says in public has a campaign element to it. So, all you Republicans who felt Pres. Bush got chastised by the media for everything he did, get over it, stop pointing at Obama, sit down, and stop saying “but, but, but…”

Features in the American Jobs Act, uncannily similar to 2009’s $720 billion Stimulus, seems like a half-hearted attempt, at only $448 billion. More troubling is the fact it’s not really a new idea and, if Big Stimulus didn’t work, why would anyone think Baby Stimulus will? Maybe that’s why Senate Democrats didn’t take up Obama’s bill, but saw their own version defeated last week. Even so, it gives the President political mileage: “100 percent of Republicans in the Senate voted against it [the Jobs bill]. That doesn’t make any sense, does it?”

Pres. Obama in Jamestown NC

One of the points in Obama’s jobs plan is payroll tax cuts, intended to put more money into workers’ pockets and encourage employers to hire at reduced costs. What the President doesn’t tout is he wants to extend the current worker tax cut, due to expire at the end of the year, and increase it from 2% to 3.1%. That’s just half of the normal 6.2%. He’s already blaming Republicans if this doesn’t happen and he can just see jobs withering away from less money in your pocket.

Fact Check: First, the current extra pocket money is not making it into the economy as most people pay down debt or save it. Something else no one is talking about is the payroll tax holiday reduces contributions to the Social Security Trust Fund. Has anyone forgotten the dire predictions for the immenent collapse of Social Security?

Wizard of Oz

Smoke and mirrors: here are a few coins for your pocket today, but they won’t be there when you retire. In this case, paying it forward doesn’t make any sense to me. In his speech in Jamestown NC today, Mr. Obama obfuscated the matter (emphasis added):

So don’t be bamboozled. (Laughter.) Don’t fall for this notion that somehow the jobs act is proposing to raise your taxes. It’s just not true. Under this—here’s what will happen. If we don’t pass the American Jobs Act, if we do not pass the provision in there that extends the payroll tax cut that we passed in December, most people here, your taxes will go up by $1,000. So voting no against the jobs bill is voting in favor of middle-class families’ income taxes going up. And that’s a fact. Don’t take my word for it—all the reporters here, they can check on the facts on this thing. That’s the truth.

Are any reporters fact-checking the only payroll taxes the Federal government collects are Social Security (FICA) and Medicare?
 

Previously on Obama’s jobs bill:

  • Obama Grandstands for Stimulus 2.0 Jobs Bill
  • Déjà Vu: Obama’s Jobs Plan is Just Stimulus 2.0
  • In Detroit: Obama’s Jobs Plan? Just Stimulus 2.0
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