Clyburn, Doggett, extension, FDR, holiday, Larson, Obama, payroll tax, Social Security
FDR didn’t foresee what would become of his party:
“We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program.'”
Which is what’s happening now. Social Security is being de-funded:
“Despite warnings it will undermine Social Security, House Democratic leaders are lining up behind a White House proposal to extend a payroll-tax cut beyond this year.
Reps. James Clyburn (D-S.C.) and John Larson (D-Conn.) both announced Friday that they’ll throw their weight behind the extended payroll-tax holiday, which President Obama and some leading Senate Democrats are prescribing as an economic stimulant.
A number of liberal Democrats had fought the initial tax cut, noting that the payroll tax is the sole funding stream for Social Security, which is already paying out more than it’s taking in. Behind Rep. Lloyd Doggett (D-Texas), the lawmakers are now continuing that campaign in the face of a proposed extension.
Earlier this month, Doggett, Ted Deutch (Fla.) and Mark Critz (Pa.) urged their Democratic colleagues to oppose any additional payroll-tax breaks. The lawmakers warned that such measures threaten Social Security’s ability to pay future benefits and defy the initial design of the program.”
But there’s no sense in just eliminating part of the funding mechanism for Social Security. If you’re gonna do it, might as well do it right:
“The existing tax holiday applies only to workers, but Obama has also floated the idea of extending it to employers as well.”