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Saturday, October 22, 2016

Many people have written to ask my opinion of the proposed expansion of the so-called payroll tax holiday. As any working American knows, the Social Security payroll tax, normally 6.2 percent, was lowered to 4.2 percent for all employees in 2011. And now the administration is proposing not only to extend that reduction for another year but also to reduce the withholding even further — to just 3.2 percent.

There are also rumors about reducing the matching tax paid by employers. In 2011, employers continued to pay the full 6.2 percent, but the proposed legislation would lower their 2012 Social Security tax rate to 3.2 percent, matching that paid by employees.

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Copyright 2011 The National Memo
  • terango.lf

    The GOP hasn’t talked about it recently, but they have been wanting to kill FDR’s New Deal policies. Just ask Grover Norquist. So I believe that the Dems may have laid a trap for the GOP using their own zeal against the New Deal. By creating this S.S. tax holiday for one year and then wanting to extend it using the Bush tax cuts to pay for it. I can only hope that the progressives actually do stratigize from time to time and not depend on happenstance all the damn time!

  • dmcrane

    Stop arguing this nonsense and just raise the cap on the Soc.Sec. withholding to the first million….fixed and solvent “forever”. The Dems want to repay it by a surtax on income over one million but even if it was not repaid by surtax, the money being repaid from the General Fund is not taking it from the same source. Even if they didn’t do that, the CBO has scored that it would reduce the length of time Soc. Sec. is totally solvent by 1.3 yrs, at which time it will still pay 80% of its payments “forever”. Raising the age to 68 is absurd; it is already too old and many people could not work that long, nor could they get a job again if they lost one. Most people cannot work until age 68, and people forget that one of the reason’s we had it in the first place, besides providing the elderly with an income, was to allow them to get out of the job market and open it up for the younger people. It is not a frequently mentioned reason, but it certainly was one of the motivating factors.