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Can someone explain- How does the payroll tax cut create jobs????

Discussion in 'Political Discussion' started by Patsfanin Philly, Dec 8, 2011.

  1. Patsfanin Philly

    Patsfanin Philly Experienced Starter w/First Big Contract

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    #95 Jersey

    Obama: More jobs in jobless benefits than Keystone | Campaign 2012 | Washington Examiner

    "As Obama called for passage of those bills, he also responded to a recent Republican push to require him to approve the construction of the Keystone XL pipeline from Canada. "However many jobs might be generated by a Keystone pipeline," he said, "they're going to be a lot fewer than the jobs that are created by extending the payroll tax cut and extending unemployment insurance."

    How does the payroll tax cut which only affects 2% of the Social Security tax paid by the employee, not the employer's portion create jobs?????? If it affected the portion paid by the employer and they had more money to spend on employees, I could see it but this has absolutely no effect on the amount paid by employers. The only difference is whether the 2% goes to the IRS or stays in employees pockets. Again, how does this create jobs???
    I won't even try to understand how unemployment insurance creates jobs. Does it help people who are down on their luck and out of work? Absolutely. Does it create jobs???? I must have missed that concept....
     
    Last edited: Dec 8, 2011
  2. JackBauer

    JackBauer Pro Bowl Player

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    I suggest Google

     
  3. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey

    While the amount seems small to the average person ... it actually affects the poverty line. Supposedly something like 1.5 million will fall below the poverty line without it. Also they say that money is helping the economy ... is it ??? IMO government tends to look at these percentages as having great effects on people - I don't see it but they do and they like arguing about it all the time.
     
  4. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    What a horrible explanation! Very few companies are willing to hire unless there is increased demand for their products/services. So they mostly just pocket the savings.


    What this explanation left out is the fact that the payroll tax cut puts more money in the hands of consumers. Someone making $100k would take home $2K extra which increases disposable income which can be spent or used to pay down debt.

    The surest way to increase jobs is by increasing consumer spending and this does that.

    The negative is that soc sec is hurting and we need more $$ put into it. If it does in fact create jobs, the additional contributions could be greater than the actual reduction.

    We'll see...
     
    Last edited: Dec 8, 2011
  5. Ilikehappyppl

    Ilikehappyppl 2nd Team Getting Their First Start

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    Payroll tax,

    Well see, the more money people have the more they spend, the more they spend,the more they buy more jobs are created.

    Tax breaks for the rich,

    The more money they have the more they hold onto, the more they hold on to the less they spend, the less they spend less jobs are made.

    DEMAND=JOBS
    NO MONEY=LESS DEMAND
    LESS DEMAND=LESS JOBS
    MORE MONEY=MORE DEMAND
    MORE DEMAND=MORE JOBS

    Is it really that hard to understand?:rolleyes:
     
  6. JackBauer

    JackBauer Pro Bowl Player

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    I can see why you'd think it's a horrible explanation. Because you clearly didn't read it.
     
  7. Ilikehappyppl

    Ilikehappyppl 2nd Team Getting Their First Start

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    lol,

    Well stop borrowing money from the SS fund, to support false wars.....then we have plenty!:bricks: SS is a great program but as long as our dip****'s in office keep borrowing from it to support wars and other bull****, it will go bankrupt.
     
  8. Hamar

    Hamar In the Starting Line-Up

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    The payroll cut seems more like robbing Peter to pay Paul kind of thing. The unemployment is sort of the same. inject a few extra dollars into the system at the cost of more problems down the line.

    The truth is though... Each side from here on out is going to take what they want and wrap it up in some type of jobs bill. This way if it is shot down they can point at the other side and say, "See, they don't want to create jobs". The sad part of all this is the people will actually make themselves believe this crap just to stay on what they believe is their side.
     
  9. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I wasn't referring to you as posting a horrible explanation, I was referring to the bit you posted from the article.

    ...obviously you posted the least important aspect of the tax cut's affects.
     
    Last edited: Dec 8, 2011
  10. The Brandon Five

    The Brandon Five Experienced Starter w/First Big Contract

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    #75 Jersey

    It will go bankrupt anyway. Upside-down demographics guarantee it. The payroll tax is really an insurance or annuity premium. The premiums were too low for too long for too many, and now those of us born after 1965 are expected to make up the difference.

    I like the idea of the cutting the payroll tax in principle (putting money in the hands of people who will actually spend or in some cases really need it), but does make the S.S. situation even worse. These are premiums. There needs to be an offset. Maybe raise the earnings limit?
     
  11. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Hilarious stuff Jack, all the benefits you cite for crating jobs are focused on the payroll tax is focused in the savings for the EMPLOYER side of the Payroll tax, NOT on the EMPLOYEE portion of the payroll tax.

    The thing is the payroll tax cut currently in place is for the EMPLOYEE portion of the payroll tax NOT the EMPLOYER portion of the payroll tax.

    You don't even understand the tax cut you are supporting....
    Great stuff. BTW if you don't believe me perhaps you will believe the conservatives over at the WaPo:

    Democratic, Republican payroll tax cut extension plans both blocked by Senate - 2chambers - The Washington Post


    The dems are focusing on the cut as a way of letting workers keep more of what they earn so they will spend more (the demand side of the supply and demand equation).

    From the same article:

    This is the same sort of gimmick that Bush 2 used with his $400 Tax rebate.

    However let's move beyond your cluelessness about Obama's proposal to the point made by the CBO you quote this part specifically:

    Now a business views the amount they pay in payrolls taxes no differently than the taxes they pay on profits.

    So just imagine the number of jobs that would be created IF we eliminated Corp taxes as Palin has suggested.....not the mention the hundred of billions business spends trying to comply with the Byzantine tax code..... ;)

    LOTS of JOBS maybe even replace the 2 million jobs lost since Obama took office...
     
  12. JackBauer

    JackBauer Pro Bowl Player

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    No offense, but learn to read.

    I wasn't taking a position on this issue. I just Googled an article for the OP in response to his question. I have no stock in either the issue as a political football or for the content of the article I linked.

    By the way, I'm still waiting for the excerpts from Obama's speech you referenced in the other thread. I expect, now that you're posting here again, you'll produce them forthwith.
     
  13. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    definately raise the limit...as a matter of fact, I support no limit. I'm done paying ss for 2011...I should feel good about that, but I don't.
     
  14. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    WHAT YOU CHOSE to quote (no link provided) mad the case that cutting Employer taxes cause job creation, this is the exact opposite of what the administration you so love is doing.

    In your case I fear reading comprehension doesn't even begin to address the problem.....:singing:
     
  15. JackBauer

    JackBauer Pro Bowl Player

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    1.) What I was quoting was the rather benign article on about.com explaining how payroll tax cuts can create jobs, since that was the query raised by the OP.

    2.) How, exactly, is the current administration doing the opposite of lowering payroll taxes?

    3.) Please attend to the other thread and provide the excerpts as requested. That is, if you have any integrity and/or pride.
     
  16. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

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    The less money you have the more likely you are going to spend it. If you're rich, you tend to save your extra money, which does not create jobs. If you're poor or middle class, you're more like to spend the money, which means you are spending it on goods and services that require employees. Wealthy investors may very put their money into companies and it's possible those companies will build new factories and hire more employees, but the fact is they won't do that unless there are consumers with money to spend. Give consumers money to spend (through such things as payroll tax cuts), and companies will then be motivated to invest, even if they have to borrow to do so.
     
  17. scout

    scout Veteran Starter w/Big Long Term Deal

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    #15 Jersey

    Seriously, how does voting against a tax cut for the middle class help the Republicans? To answer that question, it will take spin and twisted logic.
     
  18. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    2 Things, the SS tryst fund is going broke, this speeds up that process, so it is a tax cut that hurts Senior citizens, and the means to pay for it will hurt the people whose capital creates jobs.

    Every been hired by a poor person?

    The pubs propose to 'pay' for this tax cut by reducing government spending better than a tax increase on job creators who are already overtaxed.
     
  19. Patsfanin Philly

    Patsfanin Philly Experienced Starter w/First Big Contract

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    #95 Jersey

    I haven't seen the entire CBO article but I'm willing to bet it was premised on the tax cuts being a tax cut on employers as well as employees because it makes no sense in light of an employee only tax cut, as is the case now.
     
    Last edited: Dec 8, 2011
  20. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Saved capital is where money for new enterprises comes from. If you have to give the money to the government it isn't available for investment (ie job creation). The Rich don't put their $$$ in a piggy bank they INVEST it in businesses.



    Go to a pro growth economic policy not the statist anti free market Obama outline this week in his horrible speech. With these beliefs it is no wonder the economy is stagnant with 15%+ unemployment and people dropping out of the job market in droves.
     

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