Parker: Payroll ‘Tax Cut’ Just Another Welfare-state Scam

By Star Parker December 5, 2011 7:30 am

Last year a one-year cut in the payroll taxes that working Americans pay to finance Social Security was enacted in the name of so-called economic “stimulus.”

But, like the rest of the economic stimuli that have come from Washington over the last three years, the only thing that has been stimulated is the growing hole of national debt into which we sink deeper and deeper.

But now, not without surprise, our president and his Democratic colleagues want to continue, and possibly expand, this payroll tax holiday despite its obvious failure.

But wait a second. Failure is a matter of definition.

If the point was helping get our economy back on the road to growth and prosperity, the payroll tax holiday has been a failure.

But if the point of the payroll tax holiday is not to reduce government interference in our lives but to keep it, grow it and strengthen the decided movement of the last three years to turn our nation into a welfare-state plantation, it’s a great idea.

And that is really what is going on here and why President Obama and his Democratic colleagues on Capitol Hill love the idea.

Unlike our income taxes that government takes for general revenue and unspecified spending, the payroll tax is earmarked and specified. It pays for Social Security.

A cut in income taxes, even if not accompanied with an equivalent cut in government spending, puts the pressure for such cuts in place and carries with it the prospect of reduction of government interference in our lives.

But there is no such possibility with the payroll tax. When the tax was reduced “temporarily” last year from 6.2 percent to 4.2 percent, were working Americans asked to agree to an equivalent cut in their Social Security benefits that that payroll tax pays for?

Of course not.

What politician in his or her right mind would suggest to working Americans that they intend to cut Social Security benefits?

But cutting the payroll tax is a dream idea for anyone whose project is turning our nation into a welfare state.

This is because, unlike the income tax, which almost half Americans don’t pay, practically every working man and woman pays the payroll tax.

And, what the payroll tax pays for, Social Security, is impossible to cut.

So, if the payroll tax is cut, you have to find another way to pay for those Social Security retirement benefits.

So how about rich people?

Democrats would like for super-high income earners, the top 1 percent, who already pay 40 percent of America’s income taxes, to also start paying for everyone’s Social Security benefits.

Why not also force high-income earners to put their addresses up on the Internet and we can all send them our grocery bills, our car payments and our kids’ tuition bills? Let’s get the rich to pay for all our bills, including our retirement.

Unfortunately, some Republicans are allowing themselves to be suckered into this political blackmail.

Cutting payroll taxes earmarked for a Social Security system that is already bankrupt is no way to run a country and no way for people that are allegedly free and responsible citizens to live.

And using a payroll tax holiday as a back door plan to turn Social Security into a middle-class welfare program does not bode well for our nation’s future.

If the point is to fix Social Security, let working Americans keep their payroll tax and use it to fund their own private retirement account – an idea three of four Americans under 50 favor.

If the point is to restore our economy, let’s cut the trillion dollars in new spending we’ve larded into the government over the last three years and start focusing on rewarding rather than punishing individual freedom and success.

Star Parker is president of CURE, the Center for Urban Renewal and Education.

Has anything changed?

by Stewart Topping
During the last 3 years we have had change. But the wrong kind of change!  More unemployedhigher prices with food,clothing, Insurance and Gas. It is very difficult to save anymore, most are just getting by.EPA …. Has gone over board with regulating Power companies which will cost us more for our electric power. I hear they are going to regulate dust.

Board of Labor Relations …. Tell Companies they can not relocate because the new State has a right to work law. This is protection of labor Unions.
  • Businesses … More regulations, more taxes, more requirements for health care. Very difficult to hire new people.
  • Unemployment …. Nationally 9.7%, but unemployed is actually 16.6%
  • Taxes … You know the rich and the middle class will pay more.
Housing 
  1. 20% of mortgages are underwater (homeowners owe more than the value of their home).
  2. Banks own 500,000 houses and are in the process of foreclosing on 4 million more.
  3. Homeowner’s equity as a share of home values is now 38.6%, down from 59.7% in 2005.

Politicians just don’t tell the truth anymore, they tell you what they think you want to hear. It is hard to know what the real problems are in our country with all the lies and cover up’s. But We should recycle the legislators in the house and senate with people that will put the American people first.  I would leave the Tea Party legislators that were elected in the last election, they have done well but they need a Senate and White House that would help them get things done.  Here is an article that says that even the liberal Media and the Congressional Black Caucus are turning on President Obama.  He may not have any friends left.

Nearly Half of U.S. Lives in Household Receiving Government Benefit

By Sara MurrayFamilies were more dependent on government programs than ever last year.

Nearly half, 48.5%, of the population lived in a household that received some type of government benefit in the first quarter of 2010, according to Census data. Those numbers have risen since the middle of the recession when 44.4% lived households receiving benefits in the third quarter of 2008.
Click for full-size image
The share of people relying on government benefits has reached a historic high, in large part from the deep recession and meager recovery, but also because of the expansion of government programs over the years. (See a timeline on the history of government benefits programs here.)
Means-tested programs, designed to help the needy, accounted for the largest share of recipients last year. Some 34.2% of Americans lived in a household that received benefits such as food stamps, subsidized housing, cash welfare or Medicaid (the federal-state health care program for the poor).
Another 14.5% lived in homes where someone was on Medicare (the health care program for the elderly). Nearly 16% lived in households receiving Social Security.
High unemployment and increased reliance on government programs has also shrunk the nation’s share of taxpayers. Some 46.4% of households will pay no federal income tax this year, according to the nonpartisan Tax Policy Center. That’s up from 39.9% in 2007, the year Read More from WSJ Blog >>>

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