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GOP should insist on FICA tax cut amendment to Dem bill

Congressional Republicans should let Dems own the spending cliff and re-learn the English language

Before outlining what would be optimum tea partier conservative action by the House in response to the Obama/Reid-approved, “American Taxpayer Relief Act of 2012″, Senate fiscal cliff bill, passed less than three hours into A.D. 2013; let us get our New Year’s bearings straight.

We now live at the bottom of the ravine, below the Fiscal Cliff, where the Clinton Era tax rates obtain. Even before 11:59pm December 31, 2012 turned into Midnight, the reality that the then-current law (passed in 2011) would revert  2013 income tax rates to those now in effect (and last in effect before the 2001 Bush tax cuts) meant that votes  before or after the singing of Auld Lang Syne  for bills maintaining the lower Bush Era-passed rates, even for less than all taxpayers, would in no way be a violation of any pledge not to raise taxes. That is, unless conservatives have chucked Merriam and Webster, in addition to government shutdown courage.

So can we stop the badgering of Republicans with claims any have or would vote for “tax increases”, unless they support a bill that actually increases tax rates above those under current law? Please. The fiscal cliff ball is now back in Republicans’ court, where a smart GOP leadership could easily craft a Plan FI(C)A that would make nervous conservative nellies forget the “horrors” of Plan B.

Let Obama and Democrats own the Spending Cliff

Firstly, forget about trying to impose spending cuts, just now, when we don’t even have debt ceiling expiration- or other pending government shutdown-leverage. Not that these Republicans would have the courage to play chicken with any Democrat President, much less one like Barack Obama that welcomes such crises as opportunities for executive rule by fiat and/or political advantage  and the country be damned.

Let the Democrats own the spending cliff which can’t be prevented, in any event, given the selfish senior and near senior Baby Boomer electorate, even if Republicans had the courage to propose the benefit cuts and reforms required to prevent going over it. Even the weak Paul-tax collector for the bloated entitlement state-Ryan bill brought guffaws of horror from Florida during the 2012 election campaign. Yes, the sequestration cuts from defense are draconian, but this Commander-in-Chief won’t use the military to save American lives anyway and we can always rebuild after the Muslim Brotherhood-lover serves out his constitutionally last term. Ok, so the Democrats own spending.

Secondly, must we now let them steal the tax issue and continue to defraud the poor and middle class as their purported champions? We don’t have to.

This conservative’s rule has always been to accept any and all tax cuts whenever the Democrats cave. The Senate Bill is a Democratic Party cave in to conservative Republican tea partier orthodoxy. Republicans need to learn how to accept victory, explain it to the jury and leave the courtroom.

Since the assassination of JFK, Democrats have opposed tax cuts en mass. Since 2001 they have opposed the Bush tax cuts and prevented them from ever being made permanent, which circumstance has always weakened the investment incentive of the rate cuts, given the sunset provisions and average length of time to realize profits on investments.

Now, just as the Senate Democrats and Obama have caved on the issue of permanence (which would require on-the-record- roll call votes to ever raise taxes in the future) in an attempt to re-cast the Bush tax rates as Obama tax cuts; some conservative voices would have Republicans be held responsible for smaller paychecks soon to be received by lower and middle-income workers for various and sundry reasons bearing no relation to the likelihood of bargaining for spending cuts, bottom-of-the-fiscal-cliff, or even English language realities.

Up the FICA tax ante and own the poor and middle class vote in 2014 and beyond

The better course for the House of Representatives would be to accept all of the Senate bill and up the ante by revealing how it conspicuously excludes maintaining 2012 payroll tax rate of 4.2%, knowing that current law reinstates the 6.2% Clinton rate on all lower and middle-income taxpayers, which increase will hurt the very taxpayers Democrats purport to “care” about. Two percent of a $50,000 salary is $1000/year.

Given a “trust fund” full of IOUs, the absence of any individual Social Security “lock box”, and that federal income taxes and federal income-based FICA withholdings are commingled to pay current federal expenditures off all kinds; I have long argued for ending the “pension/insurance program” fraud, and FICA with it. I don’t expect our timid GOP establishment to muster the courage for that argument just now; but surely they could, for once since the 2010 tea partier landslide, swing at one slow-pitched softball and beat the Democrats at their own class-envy game.

It’s not a crime to champion the poor, the young and the middle class. So let’s do it.

Mike DeVine

“One man with courage makes a majority.” – Andrew Jackson

Editor – Hillbilly Politics

Co-Founder and Editor – Political Daily

Atlanta Law & Politics columnist – Examiner.com

COMMENTS

  • commonsenseobserver

    I have an idea that just might work…

    Lifetime savings accounts funded by a payroll tax holiday, with a partial benefits guarantee. Make the payroll tax holiday permanent, appeal to Conservatives who may have doubts about its effectiveness or fairness, let low-and-middle income workers withdraw the money for important everyday needs too, and save Social Security!

  • http://travismonitor.blogspot.com Freedoms Truth

    I am all for making the lower FICA tax rate permanent. It does however beg the question of how to pay for it all.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    We can’t pay for it all unless we tax the next generation out of their prosperity. We cab “save” Social Security and Medicare but then that would be all anyone lives for. There must be radical adjustments to the promises made to seniors; not just the young under 50. Obama won’t let us fix anything for four years. So when the Dems cave on taxes, we should at least seize that issue.

  • ntrepid

    I sure admire the fight you (and others) still have in you but, having been on-the-road and mostly off-line and out of touch for several days now, a mere fifteen disgusting words into catching up on things (via Mr. Erickson) reveal once again the far bigger problems we face than the details and strategies you provide here: “Last night, without any legislative language, the Senate Republicans and Democrats voted to raise taxes.” (1)

    Once again…last minute political theater without actual legislative language!!! This is our Ruling Class in all of its putrid glory.

    I finished “Lion of Liberty – Patrick Henry and the Call to a New Nation” (by Harlow Unger) yesterday morning. From the Afterword: “…laws are like ‘spiders’ webs [which] could catch…the weak and poor, but easily be broken by the mighty and rich.’” Those in Washington obviously know very well how insignificant tax laws are to them and are perfectly comfortable feeding “fill in the blank” oppression to our tyrannical bureaucracy.

    Now I see that Mr. Cantor voted “No”…all part of the scripted charade for our benefit, no doubt.

    Ntrepid
    Proud Redstate Member since April 2006…?

    (1) http://www.redstate.com/2013/01/01/house-republicans-dont-play-the-game/

  • exitsfunnel

    The problem here is that it’s not just Obama that ‘won’t let us fix anything,’ it’s the people. The people want this stuff; even conservatives. If the GOP won big in 2016 and made real changes to Medicare / Social Security, their would be a wave election in 2018 that would make 2006 look like a toss-up.

    Our current fiscal trajectory is unsustainable, mostly because of entitlements. But changing entitlements in any real way is politically impossible. I don’t see any way that this ends well.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    Agreed, people are the problem.

  • Kyle-MI

    Agreed. We are living in a fiscally suicidal culture and country. The majority (not the vast majority but enough of one) live in a fiscal fantasy land.

  • Kyle-MI

    “How to pay for it all” is the point. Even without lower FICA tax rates, the system is eventually doomed. It is unsustainable. The only virtue of lowering the FICA tax rates permanently is that it will force people to see reality sooner.

    I will respectfully disagree, however, that the GOP will gain any good standing from voters for this move. The Democratic propoganda machine will make sure that this will be portrayed as a cynical gimmick and the good people will gladly drink their kool-aide.

  • Kyle-MI

    I think I proposed this in an earlier post. The GOP should propose that we convert the employee contributions that are currently being holidayed into real forced contribution savings accounts fully owned by each individual. Turn them into government forced IRA’s. We could even put restrictions on what it could be invested into, require only the safest securities. Almost anything would be better than the current SS system. The point is to get a foot into the door where FICA taxes would go into some kind of private account. At the very least, people would own something when the rest of SS collapses.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    Yes, ownership of a scaled-down benefit plan that serves as a supplement to private savings, as originally envisioned, would be good. Otherwise the only way to continue without sentencing the next generation to a life dedicated to paying for their parents retirement would be means-testing and much lower benefits. We can’t afford the promises of current benefits whether its owned or not. Yes, we can “save” Social Security…but that would be about all America would be, ie a transfer payment nation for baby Boomers that never die.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    Yes, only after the real crash from the real fiscal cliff, would actually reforming SocSec and Medicare be politically viable. But we could harp on the FICA tax as yet another Dem attack on the poor and middle class NOW. Add the Obamacare part-time employee provision and other job killing and energy price raising ObamaDem laws and policies to the theme of how Dems hurt the poor and middle class and families. Been advocating this for years…ho hum…smile