Smoke and Mirrors?
By Howard Kaloogian
Each time Obummer wins political contests, America loses.
This week, Obummer won the idea of extending the current lowered FICA tax rate, always called the payroll tax in the press. So what is the problem? It’s robbing Social Security of its dedicated source for funding. I’ve never once heard the press inform us about this however. But then again, the press is an agenda driven political arm of the establishment, not a source of objective fact based information.
We hear from Al Gore, the left, and all the democrats that Social Security is in a “lock box” promising the funds will never be used for anything other than social security. Everyone knows that is a lie. The truth is the funds are used for current spending. So Obummer’s plan bankrupts Social Security faster by taking funding away. The Republicans never explained that is the result of this reduced “payroll” tax rate. It would be nice if the opposition party would learn how to oppose.
What economic benefit did Obummer’s plan give America? A miserly $19 per week extra in your paycheck. For a whopping total of 8 weeks. Yes, even I can do the math, about $154. That will turn the economy around! A ton of people will get jobs now!
Can anyone hire an employee for the $154 incentive? No, especially since only the employees get the reduced rate, the employers are still paying the higher rate. So if not one person can hire a new worker based upon this “incentive” then nobody will hire a new worker even if 130 million employees get this “incentive.” To quote Obummer, “spreading the wealth around” didn’t help anyone get hired.
The left always wants to find a way to “pay for” reduced tax rates. So where is the makeup coming from? Fees tacked onto new mortgages. So now if someone buys a home, and does so with a mortgage, or refinances their current mortgage, they will pay an extra fee to the federal government to make up for the lost revenue.
Notice first that they didn’t cut spending, but decided to create a new fee. This new fee doesn’t however go to Social Security accounting, nor does it go to pay down the national debt; it goes instead into the general fund, so that they will spend more on something new. No matter how the press spins this as a victory for Obummer, he has worsened the Social Security crisis without helping the economy.
Even if the Congress transferred these fees into Social Security funding, whose account would it go to? Don’t you get a periodic statement from the SS Administration showing how much you’ve contributed and how much of a retirement payment that translates into? Will your “account” be credited if they transferred these fees? Not likely.
How long will are these fees tacked onto mortgages? TEN YEARS!!!! For the next decade, we’ll be paying a fee on any mortgage we take out, new purchase or refinance, for those 8 weeks of $19 relief in our FICA tax. By the way, the rich that Obummer always claims are the only people he wants to take money from won’t pay these fees. The rich can pay cash when they buy a new home, thus no fee.
I’m so glad Obummer is the smartest man to ever become president. Imagine how stupid his ideas would be if he wasn’t.