The cost to the economy for rolling back the Payroll Tax Holiday is over $100B a year.
The average $50,000 wage earner is going to feel as if $100 was taken from their paycheck.
Many will not realize this was the tax cut they never gave credit to President Obama for ever receiving.
Regardless, people will feel this loss of $100 each month. Add this to the increased taxes for those earning over $400K and we have some very real recessionary pressure on our economy.
Are Democrats willing to get the stimulus of a Payroll Tax Holiday back into the economy?
Would you be willing to get economic growth now in exchange for chained CPI cost-of-living allowance in the future for a savings of $125B year?
Are we willing to effectively borrow $125B from our future in order to generate $100B in economic activity today?
Is it better to get higher growth rate in GDP and a lower COLA, or a lower growth rate in GDP and higher COLA?
If we all get a permanent Payroll Tax Holiday, would you be willing to change to a chained CPI for your COLA?
If this change is made to SS, this is a cut to spending by $250B over a decade.
The people who pay the biggest price for chained CPI would be the people receiving the Payroll Tax Holiday today….but you’d be receiving a smaller COLA on a bigger base and might well be ahead of the game by the time you collect SS.......
I am a Democrat and I would accept chained CPI in exchange for a reduced payroll tax.