Tuesday, December 20, 2011

Mystery economists just don't get it


The 'you've-gotta-be-kidding' BS moment of the day comes from a CNN report that feigns doom if the payroll tax deadlock isn't resolved:

If Congress fails to pass an extension of the payroll tax holiday, it would put a serious dent into economic growth in 2012 and could even help tip the U.S. back into a recession, according to economists.

Are you freakin' kidding me? These mysterious economists are full of it! And I hate to break it to them, but for most Americans, the recession has been ongoing, despite the government's trumped up calculations. For giggles, which it is, let's just say that gracious $1000/person cut goes away. Anyone done the math on this? Divided by 365 days is slightly over an extra $2.73/day (or by 52 weeks is $19.23/week), which was supposed to be funding FICA contributions (Social Security, Medicare & Medicaid) in the first place. Institutions that are BANKRUPT! Not to mention how the Senate's 2-month extension wants to pay for the payroll tax cut: raising the fees on people who buy a house or refinance their mortgage starting in 2012! And I haven't even mentioned the unemployment extension that we simply can't afford. So while the House battles for something more meaningful, some Senate Republicans, like McCain and Brown, are cowering to Democrats and attacking their Republican counterparts.

I'm all for getting rid of payroll taxes altogether, but there must be a plan in place to provide another means of funding Social Security and Medicare as they exist, and perhaps a plan that includes alternative options to these institutions. For instance, the Chilean model, perhaps?

Yeah, not exactly that kind of model...

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