The payroll tax cut is coming up again. If you remember, at the end of the last year an agreement was reached to push the extension of the tax cuts for the wage earner 60 days down the road. It was hoped that at that time, which by the way is now, both sides of the aisle and the president would be in a more cooperative mood. But, it appears that they still aren’t ready to make a deal.
But, for me, there should be no deal.
If you don’t know, you should, the few extra dollars in you paycheck are coming at a high cost. The payroll tax cut is really a reduction in the Social Security tax that each of us pay. That means for as long as the tax cut is in place, Social Security is getting less money. Less money for a fund that needs every cent it can get right now to stay balanced. (Some may say that the fund is broke. While I don’t believe it, that is for economists, not this blog. But, if we don’t fund it like it should be, it will be broke and we don’t need an economist to tell us that.)
Also, at the same time all of this is going on, we are asking those that make more money than 99% of us to pay more taxes to help out. I think it is a good idea. We have a budget issue, we have a down economy and we need to help those that are in need get through this. We can’t do it if we are afraid to ask those that can help for little more.
Why is it that we that are earning wages are asking for a tax cut when we are asking others to pay more in taxes? It shouldn’t be that way because we are all in this together. To ask one side to help and not expect it from ourselves is, well, selfish.
With that said, I say we should let the payroll tax cut expire for wage earners. Take the few dollars more to help the overall budget and keep funding Social Security. Also, let the high income tax cuts expire. We can’t keep asking others to pay more in taxes when we are giving ourselves a tax cut.
This is our community and we are all in this together. Let’s start thinking that way.