Friday, December 30, 2011
Payroll Tax Cut and Stability of Social Security
Critics of the passage of the payroll tax exemption are arguing that it portends a dangerous new direction for the one basic safety net that most Americans agree on preserving. The new direction weakens the entire premise of the program. And, while I do not pay into Social Security, I understand and at least somewhat agree with the criticism. Certainly, this extension is weakening the overall funding of the program, and I was surprised to learn this is the first ever cut in the payroll tax. The idea of using such a cut as stimulus is dubious at best. The same goes for the seemingly unlimited extensions in unemployment. There has to be a point at which the government ceases to continually fund unemployment - especially because there is no legitimate means testing for this benefit. Ultimately, Americans need to commit to precision surgery to save the limb of the basics of a safety net.