Whaaattt???? Republicans want to raise taxes on me, but not on the rich???? WHY?
“News flash: Congressional Republicans want to raise your taxes,” writes the Associated Press this morning in a story that explains how Congress will allow the payroll tax break to expire come January 1. Currently, workers pay 6.2 percent of their wages in taxes that go toward Social Security; employers pay an equal amount. Last December, Congress approved Obama’s request that workers only pay 4.2 percent for the following year while keeping employers’ rates the same. The president is asking Congress to extend the policy to help take pressure off the millions of workers who pay more in payroll taxes than in federal income taxes. The non-partisan Congressional Budget Office says that payroll tax reductions give the economy a short-term boost.
Republicans are arguing that this tax cut will push the deficit higher, and they’re not wrong: A 12-month reduction will cost the government $120 billion this year. But they refuse to let the Bush tax cuts expire, arguing that doing so would amount to a tax increase — and Republicans are anti-tax, no matter what. Don’t worry, House Republicans have a good explanation for this dissonance: “Not all tax relief is created equal.”