Technology Slice Blog

New Stimulus, Payroll Tax Holiday - President Obama and the Republicans will say that the payroll tax holiday is all about stimulating the economy. But don't be fooled. According to the Center for Budget and Policy Priorities, there are many better ways to stimulate the economy with that $120 billion the payroll tax holiday will cost, including simply extending the Making Work Pay Tax Credit. See "Payroll Tax Holiday a Poor Stimulus Idea," available at this link. And the other, better forms of stimulus pose no threat to Social Security. The innocent-sounding payroll tax holiday, on the other hand, will lead inexorably to killing Social Security. Let me explain: Sixty members of the Senate are unwilling to raise taxes evenon those earning over $1 million. Given that unwillingness to raise taxes by less than a nickel on every dollar earned over $1 million, I find it unfathomable that a more conservative Congress, in two years, heading toward an election, will increase ...

Payroll Tax Holiday Possibility - The Obama administration proposed a year-long reduction in payroll taxes of 2 percentage points as part of a broader compromise to extend Bush-era tax cuts temporarily, a congressional aide said. The proposed reduction was offered as an alternative to renewing the “Making Work Pay” tax credit, a creation of President Barack Obama that expires Dec. 31 along with lower income-tax rates enacted in 2001 and 2003, the aide said, speaking on condition of anonymity. Some Senate Republicans oppose the credit. Negotiators also are discussing including Obama’s proposal to allow a full deduction for equipment purchases that currently must be deducted over time, an administration official said. The proposal would accelerate $200 billion in tax savings for companies in the first year and benefit 1.5 million companies and several million individuals who run businesses, according to White House estimates. Total revenue lost from the so-called expensing proposa...