Driving the Week Update: Payroll Tax Still Not Extended

Congress continues to clash over how to extend the payroll tax cut. Democrats want to simultaneously hike taxes on job creators (seriously), while claiming to be in favor of tax cuts (i.e., extending current policy). It shows the deep divide between conservatives and liberals, the latter which will use any opportunity available to try and increase taxes.

Liberals believe that we can continue spend as we are – or more – and just hike taxes to make up the difference. Conservatives believe – rightly so – that government has grown too big, needs to be scaled back, and that no amount of tax hikes can cover the difference.

Congress has already decided to extend the payroll tax cut. .

Today, House Republicans unveiled a proposal to extend the payroll tax cut for another year. They attached it to approval of the Keystone pipeline and a handful of additional policies. Liberals say that a temporary, demand-side payroll tax cut creates jobs, and if jobs are the big priority, then why not include the pipeline, which we know will create tens of thousands of jobs?

For some reason, President Obama and Senate Majority Leader Harry Reid (D-NV) do not agree. Sen. Reid told conservatives that if “the House sends us their bill with Keystone in it, they are just wasting valuable time because it will not pass the Senate.”

So, it’s okay to “create” jobs via the payroll tax, but it is not okay to create tens of thousands of jobs, many of which would be construction jobs?  President Obama actually claimed:

“[H]ere’s what I know: However many jobs might be generated by a Keystone pipeline, they’re going to be a lot fewer than the jobs that are created by extending the payroll tax cut and extending unemployment insurance.”


We know that right out of the gate the Keystone pipeline could create 20,000 jobs.  Why does President Obama believe this is a one or the other choice?  If the President wants to create jobs, he should approve the Keystone pipeline and give up his dedication to taxing job creators in order to pay for the payroll tax deduction.

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