The focus upon the high income earners from the Compromise Tax Cut has missed the focus upon the miserable treatment of low income earners and seniors.
Consider the implications of the analysis from Huffington Post by Andrew Fieldhouse of the Economic Policy Institute, which is found at:
http://www.huffingtonpost.com/andrew-fieldhouse/any-payroll-tax-cut-shoul_b_796741.html
Basically, the 2% payroll tax cut exchange for the existing Making Work Pay program, takes away the help giving those earning under $20,000 per year and their taxes increase. The Making Work Pay program gives all workers 400 dollars and couples 800 dollars. That means the low income earner (less than 20,000). A 2% payroll tax reduction on less than $20,000 amounts to less than 400 dollars. $20,000.00 is the break even point.
The conclusion is that high income earners receive thousands in tax cuts and the lowest income earners will pay more. This GOP forced proposal shows its TEA PARTY attitude,
Further, the 2% is a cut on some money that goes to the so-called Social Security Trust Fund. In many ways it is a good idea in that it is both simulative and helpful for middle class wage earners. I am sure that the President’s thinking is to correct that deficit down the road. However it is clear that GOP and especially its Tea Party constituency has a goal of limiting Social Security benefits. Please note that Congressman Elect Gibson was quoted at a GOP meeting as reviewing the retirement age because people are living longer. Please see:
The fact that Congressman Elect Gibson he has a “20 year and out” pension which will now be augmented by his Congressional retirement program further shows the GOTP thinking.http://www.registerstar.com/articles/2010/12/11/news/doc4d03033cd26fd206187188.txt
What can be done:
Write of call our Senators and Current and New Congressman:
Congressman Murphy’s office in Saratoga Springs at 518-581-8247.
Senator Gillibrand’s office at 202-224-4451 or
Senator Schumer's office at 202-224-6542.
Doug McGivney
