[lbo-talk] Payroll tax cut extension

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Fri Feb 17 15:41:35 PST 2012



> in order to finance it out of the general budget, they
> would need to increase the income tax rate, no?

Well, yes: you have to pay for it somehow.


> So it really depends if the increase is progressive.

My point is that it is progressive today, and almost all of the changes in recent history -- AMT, the 2% Schedule A phaseouts, EITC, etc. -- have been progressive. The only ones that haven't been have been the changes to the capital gains rate.

Right, Max?


> Right now, 50% of SS tax is paid by employers.

Well, it's more than 50% these days because of the 2% break employees are getting.


> If they include it in the general budget, it will get the
> employers off the hook, no?

The net result would be an increase in taxable income for the employers, so I'm not sure that's a big deal.

/jordan



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