What the payroll tax deal will do
President Barack Obama speaks on payroll tax extension on December 22, 2011 in Washington, DC.
December 23rd, 2011
10:59 AM ET
3 years ago

What the payroll tax deal will do

NEW YORK (CNNMoney) - Well, that was painful.

The House and Senate on Friday finally approved a short-term extension of the payroll tax cut and federal unemployment benefits, and staved off a steep cut in pay to Medicare doctors.

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Filed under: Congress • House • Senate • Taxes
soundoff (22 Responses)
  1. WiredweirdinSF

    It will add to the coming bankruptcy that Obozo and the democrat liberals have brought upon us. The money is coming from Social Security folks. I know most of the Obama supporters don't understand that. They can only think of how bad it will be if Obama can't give them their drug money, but for us folks who have accepted personal responsibility for our lives, we have seen the inept, incompletent, corrupt union toady steal a big chunk of our savings to give to the corrupt union bosses and welfare frauds and now he is stealing our Social Security money.

    December 23, 2011 11:05 am at 11:05 am |
  2. Rudy NYC

    WiredweirdinSF

    It will add to the coming bankruptcy that Obozo and the democrat liberals have brought upon us. The money is coming from Social Security folks. I know most of the Obama supporters don't understand that.
    -----------------
    The cut adds less debt than the BTCs. Thanks to the Tea Party caucus, it is "funded." I see that you don't yet fully understand just how brightly and thoroughly Republican hypocrisy is being put on display. "Tax cuts pay for themselves."

    December 23, 2011 11:19 am at 11:19 am |
  3. Two Coppers

    Typical knee-jerk response as you valiantly look for some way to blame republican garbage on the black president, wired. The price tag for this was a good deal cheaper than the price tag for the house version of the bill. Why? Because the house bill also included yet another corporate tax credit. Your rancor is better placed where it belongs; with the republicans that will rob you blind to pay for corporate jets.

    December 23, 2011 11:21 am at 11:21 am |
  4. BILL, WI

    What was wrong with the original Repub plan to extend the 2% payroll tax cut for one more year. Now that the Democrats got their way with only a two month extensio, we can see another repeat of this in March. Sen Reid and the Dems are doing this short term extension game only for the gameshow effect in the runup to the 2012 election cycle.

    December 23, 2011 11:24 am at 11:24 am |
  5. GI Joe

    I think the two unfunded tax cuts for the wealthiest back in 2001 and 2003 added to the debt. And don't forget the two unfunded republican wars.

    December 23, 2011 11:27 am at 11:27 am |
  6. diridi

    do not cry on Debt, if Rich pay their share of Tax, Nation is alright. This debt for USA is "Peanuts". Ask not cut on poor and needy ask rich to pay tax...

    December 23, 2011 11:31 am at 11:31 am |
  7. Protect Social Security

    47% of Americans pay no federal income taxes and our President decided to endanger Social Security for them by cutting Social Security Payroll taxes, instead of regular income taxes, taking a $400 billion dollar Social Security surplus to $100 billion dollar Social Security deficit in one year. Now he's demonstrating his socialistic worldview by now stating the same 47% who pay no federal income taxes now don't have to pay social security payroll taxes and still get social security by making others ("the rich") pay more regular taxes. Social Security needs to be taken completely off budget and dealt with as a separate entity like it was before President Johnson. Only people who pay income taxes should receive tax cuts and only people who pay social security payroll taxes should collect social security. Other citizens should have to pay more in income taxes to pay for the Social Security that some now won't even being paying for.

    December 23, 2011 11:42 am at 11:42 am |
  8. Four and The Door

    This 2 month weak effort is a political joke on the American people. All it allows for is more classic Obama drama pushing his class warfare strategy for 8 more weeks under the guise of 'negotiations'. It is sad. And it is desperate.

    I hope eventually they get back to manging the federal government instead of their political games.

    Romney 2012. It will be well past time for some leadership out of this mess by then.

    December 23, 2011 11:50 am at 11:50 am |
  9. Ray E. (Georgia)

    Live it up today, pay tomorrow. Soak the rich, till they are no more. Can anyone say Depression??? How come 46 Million on Food Stamps???

    December 23, 2011 11:52 am at 11:52 am |
  10. Lynda/Minnesota

    "What will the payroll tax deal do?"

    Well, for starters ... it help me pay my heating bill for the next two months.

    December 23, 2011 12:00 pm at 12:00 pm |
  11. Protect Social Security

    47% of Americans pay no federal income taxes and our President decided to endanger Social Security for them by cutting Social Security payroll taxes, instead of income taxes, taking a 400 billion dollar Social Security surplus to a $100 billion Social Security deficit in one year. Failure!!!! Now he demonstrates his socialistic worldview by trying to ensure the same 47% who pay no federal income taxes don't have to pay for their own Social Security like the rest of us by having someone cover there cost ("the rich"). We should be telling our President only people who pay income taxes should receive tax cuts and only people who pay Social Security Payroll taxes should receive Social Security. Social Security needs to be taken completely off budget like it was before President Johnson.

    December 23, 2011 12:00 pm at 12:00 pm |
  12. Lynda/Minnesota

    Oops. Should have been:

    Well, for starters ... it WILLhelp me pay my heating bill for the next two months.

    December 23, 2011 12:12 pm at 12:12 pm |
  13. Hammerer

    I can not believe that the American taxpayer is so naive as to believe that they will receive more money with this scam!
    Maybe the Obama agents that shout the benifits that the taxpayer will receive from this move by the government will explain where the money for the cuts will come from and what programs will be effected.
    The tax cuts take money from social security and the money for the unemployment extension will come from tax rolls.
    Guess where the taxes the government hands out comes from, the taxpayers. The same people that Obama claims he is putting more money in their paycheck.
    If this is not a scam maybe Obama's agents – Snuffy, Rudy and Co. – can tell us truthfully and honestly who is going to pay for this latest political move by the Dems.

    December 23, 2011 12:12 pm at 12:12 pm |
  14. Rudy NYC

    Protect Social Security

    47% of Americans pay no federal income taxes ...
    ------------–
    ...thanks to laws proposed and sponsored by a Republican President to protect those with little or no income.
    ...thanks to financial proposals sponsored by Republicans that created tax-free withdrawal retirement accounts.
    ...and a special thanks and shout out to all of the ideologically driven Republicans, who over the past 30+ years have forgotten to tell the job creators that they were supposed to create jobs when they received their tax cuts.

    December 23, 2011 12:18 pm at 12:18 pm |
  15. ken, nj

    Why is there a media blackout of how the payroll tax cut will be paid for. The 2 month payroll tax cut will be paid for by adding a $17. mo fee on new mortgages and refinances or $6,000. for 30 yrs. If congress extends the payroll tax cut to 12 months homeowners will have to pay $102. mo or $30,000 to get a 1,000. tax cut. It is laugable to hear the media whining about the poor doctors who will also get a 30% bribe to treat medicare patients. This whole deal is a joke on the 80% of the voters who think it is ok to buy their vote. People on fixed incomes who don't work will get no tax cut.

    December 23, 2011 12:22 pm at 12:22 pm |
  16. Rudy NYC

    Four and The Door observed:

    This 2 month weak effort is a political joke on the American people.
    ------------
    I agree. Democrats have been fighting for a one year extension from the start. Two monts was all the McConnell would concede at this time. Republicans are still against it the tax cut, and they always have been on ideological grounds. Unfortunately for them, objecting to it contradicts their sacri-pleges to Norquist. And so, they are stuck between an ideological rock and a hard place. Ironically, the "hard place" has a name, it's called "the right thing to do for America."

    December 23, 2011 12:23 pm at 12:23 pm |
  17. Truth and Nothing But the Truth

    The Obama/Democrat class warfare scam continues unabated and at an INCREASED pace. The Democrats have now concocted another scam to shift taxes from those that should be paying them to others, aka "the rich", aka "those that work and produce". In the process the threaten social security funding. Where is the outrage of the seniors for the Democrats messing with social security?? Of course, the press completes ignores this aspect to shield Obama and the Democrats. All while running ads lying about Republicans want to do away with it.

    This country is heading full steam towards a very deep chasm if the Democrats maintain their strangehold on the federal government and its finances. The rioting you see in Greece will be magnified 100 times in this country when we go over the cliff in the coming years. The Democrat Party need to rename itself to The Madoff Party. They are running a scam 1000 times worse than Bernie ever did.

    December 23, 2011 12:28 pm at 12:28 pm |
  18. Truth and Nothing But the Truth

    >Lynda/Minnesota
    >Well, for starters ... it WILLhelp me pay my heating bill for the next two months

    When the country goes belly up, whose going to pay your heating bill? A word to the wise, invest in heavy sweaters.

    December 23, 2011 12:32 pm at 12:32 pm |
  19. Lynda/Minnesota

    "and a special thanks and shout out to all of the ideologically driven Republicans, who over the past 30+ years have forgotten to tell the job creators that they were supposed to create jobs when they received their tax cuts."

    We can shout out tell hell freezes over, Rudy. Doubt it will do any good. It hasn't yet. I'm more interested in what it is these fools would want "done" to those whose income is already so low that they fall under the radar (so to speak) of tax brackets. Stick 'em in debtors prisons? Ship 'em off to Timbuktu? Let 'em die in the streets?

    December 23, 2011 12:33 pm at 12:33 pm |
  20. Lynda/Minnesota

    "When the country goes belly up, whose going to pay your heating bill? A word to the wise, invest in heavy sweaters."

    Hey, Truth. When the country goes belly up, I'll already be 6 feet under. Sweaters probably won't help much. Meanwhile, I've never taken a "handout" from the government ... never will. (Just to be clear)

    December 23, 2011 12:40 pm at 12:40 pm |
  21. Wire Palladin, S. F.

    I really doubt that our country will go belly up because of the 2 month extension. We watch Reagan, Bush, and Bush lite add $11 trillion to our national debt, did not go belly up, and we are now recovering from the republican near depression. Things are getting better, despite the efforts of elected republicans.

    December 23, 2011 12:43 pm at 12:43 pm |
  22. GI Joe

    Let's cut welfare (called subsidies) to wealthy farmers, wealthy oil companies, etc., to pay for the tax cuts in February. That should do it. Then let the tax cuts from 2001 and 2003 expire for EVERYONE the end of 2012.

    Any future "cuts" will have to be funded.

    How will we ever pay for the two unfunded wars?

    December 23, 2011 12:48 pm at 12:48 pm |