Sep 18, 2011 2:15 AM GMT
http://www.cbsnews.com/stories/2011/09/17/politics/main20107733.shtmlThe GOP leaders say such a temporary reduction means taxes will go up later when the reduction expires in 2013.
"While employees would see an additional temporary benefit from this proposal in 2012," they wrote, "they would experience a larger effective tax increase 12 months later when the payroll tax reverted back to its full level.
"There may be significant unforeseen downsides to large temporary tax cuts immediately followed by large tax increases," they added.
Am I missing something here? So why can't one say the same for 2013? 2014?
Are they assuming the economy is going to be better without the temporary reduction? If so, then yes, people would pay more payroll taxes. So what? The economy is better as a result, and that's the goal.
The only conclusion is they want the economy to suffer.