Reply to Unemployment is down slightly; now the GOP HAS to raise the payroll tax to sabotage the economy?

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Reply to "Unemployment is down slightly; now the GOP HAS to raise the payroll tax to sabotage the economy?"

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[quote=Anonymous][quote=Anonymous]Can you honestly not see the long term problem associated with continuing to freeze the payroll taxes?  It is simply pushing the problem down the road. [/quote]

We have two problems right now.  One is budget deficits.  The other is a slow economy.  Yes, everyone is aware that government spending of any kind -  whether in the form of a tax cut, government funding of projects, payouts of unemployment, etc. - increases deficits.  But that's what governments do in down economies.  There are only two tools in the shed - spending and monetary policy (ie interest rates), and the Fed is already cranked up to 11.

We have had ten years of pushing the tax problem down the road.  That can got kicked when we cut taxes under Bush.  Why did we do it?  Have we all forgotten?  They were intended to stimulate a flagging economy.  So both parties buy into the idea of tax cuts as stimulus.

So why are the Republicans against it?  This is the effect that Moody's says it will have on the economy:  "“...would add 2 percentage points to GDP growth next year, add 1.9 million jobs, and cut the unemployment rate by a percentage point.”

So basically Republicans look at 1.9 million new jobs and an unemployment rate of 7.5% and they realize this is Obama's re-election.  The average person might feel that those numbers are a good thing. [/quote]

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