Payroll Tax Vote

The Payroll tax holiday reduces employee deductions for Social Security from 6.2% to 4.2%. The vote today simply extends this 2% cash-flow break until February 29, 2012. This has been going on since 2010, through 2011 and they want to continue it through 2012.

This makes as much sense as being allowed to pay interest only on your mortgage. We will make up the shortfall ourselves with a hike in the payroll tax later. This is a cash-flow exercise. Like most ponzi schemes, Social Security payments will cease when the federal government runs out of money. We’re already there. A straightforward admission that the federal government is going to need to privatize Social Security is too big a blow for our socialist rulers to allow.

Left out was any action on a host of other "temporary" tax breaks that expire this year. These include the research and development credit for businesses and a state and local sales tax deduction for individuals (oops). Also left behind is a fix for the 20% less Medicare doctors receive as reimbursement.

Beware

I looks like Democrats want to weaken the Social Security Retirement Plan by underfunding it by 30%. Up to this point, the word is that the Social Security System is the only solvent thing our federal government runs. Democrats certainly don’t like that. If we hit the debt wall and need to cut our federal spending in half, they want Social Security tainted so it will be on the table. They want to means test Social Security so it ceases to be a defined benefit plan, albeit a bad deal. It then clearly becomes part of the socialist welfare plan. Move over Greece, here we come.

We want Social Security left alone and want them to cut all their money squandering departments and agencies instead. They hate this idea and will go postal if we even mention it. We want to beat them over the head with the Social Security System and want them to keep every promise made and pay it out and strip themselves naked to do it. We would let them off the hook for citizens who don’t yet have a Social Security Card and let them set up their own retirement plan with these deductions, but this would be a Defined Contribution Plan that they own. Social Security would then be paid out of the general fund with an increase in import tariffs. We would kill the death tax and allow families to accumulate wealth.

Norb Leahy, Dunwoody GA Tea Party Leader