In his post yesterday on the House (Republican) bill “to extend the FICA tax holiday”, John Hinderaker explores some issues left unexplored by a mainstream media which seems sometimes all too eager to repeat the administration’s defense of its policies — and criticism of Republicans.
He reminds us that the payroll tax, part of which has been on holiday pays for a popular program:
There are two things going on here, one superficial and one relatively profound. On the surface, this is all about politics. The Democrats, after decades of posing as the guardians of Social Security, have carelessly and out of political expediency undercut the financing of that program in a manner that is likely to be critical. Their only purpose is to be able to characterize Republicans as tax-raisers on the middle class. The Republicans properly refuse to take that bait and instead are going along with the Democrats’ “destroy Social Security first” ploy. This effectively takes the payroll tax extension out of play as a political issue, no matter how the Democrats may try to spin it.
But there is something more serious going on as well. If the payroll tax holiday extension passes–and both parties are now on record as favoring it–the dam will have been breached, and Social Security will be massively insolvent, not at some point in the future, but today.
Read the whole thing.
Seems like this is a tax cut the Democrats aren’t paying for. (Recall how much the incumbent faulted his predecessor contending that Republican didn’t pay for the policies enacted under his watch?) And wonder why we don’t see more scrutiny of the administration’s insistence on taking money out of Social Security.
FROM THE COMMENTS: V the K reports some interesting news and offers some insightful commentary: “Nancy Pelosi claims that Congress shouldn’t even try to pay for the payroll tax cut extension. So, if deficit spending doesn’t matter, why are they so hot to raise taxes?”