CORNISH: But the idea behind the payroll tax holiday was to stimulate the economy. And by that measure, did it work?
YDSTIE: Yeah. I think most economists would agree it did... [it] raised take-home pay by around $100 billion a year. The economic research firm, Moody's Analytics, says for every dollar workers were able to keep in their pockets, $1.27 was added to U.S. GDP....
CORNISH: So help us understand, if most economists agree the payroll tax holiday has actually helped the economy, isn't allowing it to expire going to hurt the economy when the government starts taking this money out of people's pockets again?
YDSTIE: You're right. It very likely will hurt the economy. Economists say it could trim more than a half a percentage point off of growth in 2013. And when you're only growing in the range of around 2 percent or a little more than that a year, that's significant.
Burhanistan: I don't think it's particularly "regressive", especially since it's a flat rate.
I don't think it's particularly "regressive", especially since it's a flat rate. However, yeah, people who derive yearly income from capital gains are in a different situation.
No. No, it isn't. Most white collar professionals will work their entire lives and never come anywhere close to $240k/year, let alone $174k.
There will be no direct action at all on employment and growth. The US government is still dead in the water as the prosperity of the country is eroded, so mass unemployment will continue to be a recessionary drag on the US economy. The unemployed will have their benefits extended, of course, along with their hopelessness and crushed dreams, as they learn to live permanently beneath the bus under which Obama and the Republicans have thrown them.
So to me, this deal is a recession package. Welcome to the double dip! I guess Obama has learned nothing from the experience of his Tory pal, David Cameron, or from the other countries in Euro Austerityland who have engineered a second punishing recession for their people. Or maybe Obama is doing it to us on purpose, to inflict more conservative shock treatment on the US social contract that Pete Peterson, Erskine Bowles and Alan Simpson have convinced him we can’t afford.
House Republicans Thursday are rolling partisan welcome mat for newly elected Democrats, circulating a tongue-in-cheek guide for being the perfect "lap dog" for Minority Leader Nancy Pelosi....
In releases targeting all of Pelosi's new colleagues, the National Republican Congressional Committee is welcoming new members "to Washington with his very own official Nancy Pelosi Obedience School Lap Dog Kit." ...
According to a draft of the release accompanying the "kit," it comes "complete with a 'Yes, Nancy Pelosi' stamp and an official Lap Dog membership card ... [so new members] will be prepared to rubber stamp her tax and spend, big-government policies and support Democrats' failed agenda."
If Republicans start issuing a list of demands that must be met before they will raise the debt ceiling, Obama should simply say that he will issue platinum coins as necessary to pay government bills if he cannot borrow. But, to avoid causing long-term inflation expectations to skyrocket, he should pledge that he will have the Treasury issue enough bonds to buy back all the newly issued currency as soon as it is allowed to do so.
And then he should offer to sign a bill revoking his authority to issue platinum coins -- so long as that bill also abolishes the debt ceiling. The executive branch will give up its unwarranted power to print if the legislative branch will give up its unwarranted restriction on borrowing to cover already appropriated obligations.
Employees have been calling and texting our accountant today concerned because their paycheck was smaller... REALLY?!?!!! You put "O" on your bumper and encouraged friends to vote, and think I cut your pay??! Sorry, YOU cut your pay, and mine, don't get mad at the accountant. Welcome to the new America.
I don't suppose any of them bothered to thank you when the payroll tax break started, either.
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