Payroll Tax, Doc Fix, Unemployment Insurance
As part of the 2010 tax deal, Congress and President Obama decided to cut the payroll tax by 2-percentage points, from 6.1% to 4.1% for employees for one year as a temporary stimulus measure (which did not work). Just before Christmas, the tax cut was extended for another two months.
Conservatives should be aware President Obama has politicized the entire matter in a feeble attempt to distract from the real issues, such as comprehensive tax reform. It has also distracted from serious policy conversation on how to fix Medicare’s physician reimbursement system and our unemployment insurance system, which gives benefits for 99 weeks. Numerous expired tax extenders and budget gimmicks could become part of this package, too.