What do you think will be done about payroll taxes?

[Snodog]

The US unemployment rate (from what I've read) is about half that.

I qouted the U-6 rate which also counts people who have given up looking for a job (but still want one) and people who want a full time job but have settled for part-time work.

[MonkeyMama]

Government has a way of passing tax laws well past the last minute, so maybe we will know for sure next spring. IF we're lucky, maybe they will pass something around 12/31.

I think I Called it. 2 month extension passed today. Pushed it off to figure it out later. Not surprising in the least.

What a nightmare for business. I am a tax professional and was just reading all the details for if they don't end up extending for the rest of the year (on income tax return - there will be a balance due - for those who earn more than the social security taxable wage base - those who pay the max won't get any tax break unless they earn more later in the year and less early on in the year. Which is maybe fair and fine, but this is not readily apparent to the average joe AND creates more complexity in the tax code - like we don't have enough).

Not to mention we do a lot of payroll and this is going to create a ton of work on that side too.

Basically, this will cost lots of money for small businesses, the costs of which are generally passed on to employees and consumers. In addition, just creates a lot of uncertainty. Though if they pass it for the whole year in the end, guess it won't really matter. If they change it to something else later, will be a nightmare though. Lord knows why they can't come to any agreement in a reasonable amount of time. The IRS did not handle very last minute tax law changes last year, very well, and I doubt they are very equipped to handle a mid-year payroll tax change. Nor is the IRS or any payroll software company overly equipped to deal with 7 days notice on what the actual payroll tax rates will be for 2012. (& maybe those people would like to take Christmas Day off, and stuff like that). Yes, I have and will be writing e-mails to my representatives to tell them what I think about this.

[GREENBACK]

They're kicking it down the road. Should be a big political hot potato for the upcoming presidential election year.

[Kooshiball]

Yes, they are certainly kicking the can down the road. Obama is doing this to just buy vote...

[maat55]

You could and it would cure the unemployment problem -however(and I'm sure you will agree) that that much money would obviously cause massive inflation. You want to deficit spend the correct amount and too much would be disastrous. Right now with low inflation and 17% unemployment we are under spending and/or over taxing. Just my 2 cents.

Who would work if the government just kept giving/gave them a million dollars?

Keynesians do not understand human nature or how intrusive government policies cause negative consequences in a free market.

We have far crossed the line of healthy government between anarchy and communism. It is the ignorant self destructors asking for more government solutions.

[photo]

Keynesians do not understand human nature or how intrusive government policies cause negative consequences in a free market.

I always used to think that people and entities learn from their own mistakes. Only the smart ones do. The problem is that we all have to live with the laws of our own governments, and regardless of how well we do or how many intelligent fiduciary decisions we've individually made, we're still going to have to live with the mess that our legislative bodies create. It's rather depressing if you think too much about it.

[Snodog]

Who would work if the government just kept giving/gave them a million dollars?

If the goverment gave just me a million dollars I wouldn't have to work. If the government gave everyone a million dollars I would have to work because a hamburger may cost 50 grand.

The governemnt is taxing us too much because in a nutshell the problem with our economy is that people don't have enough money to buy all the products and services that our country can produce at full employment.

Keynesians do not understand human nature or how intrusive government policies cause negative consequences in a free market.

I'm not a Keynesian. I think the MMTers have a more correct explaination for how the economy works.

We have far crossed the line of healthy government between anarchy and communism. It is the ignorant self destructors asking for more government solutions

So giving people more of their money back is too much government involvement?

[photo]

So giving people more of their money back is too much government involvement?

Some people are now to the point of thinking that the government allowing us to keep more of our own money is nearly a gift.

Congress (people from both parties) have been extraordinarily irresponsible and want us to fund their splurging. And even worse, they're funding projects and companies in which members of Congress (or their families) will benefit enormously.

One word: Solyndra. I don't know about you, but before I would throw a half billion dollars away, I'd at least ask to look at how the money was being spent, which is a whole lot more than Congress or the Obama administration ever did.

[irmanator]

I qouted the U-6 rate which also counts people who have given up looking for a job (but still want one) and people who want a full time job but have settled for part-time work.

I wonder how they know the difference between people who want a job and those that don't. In some instances someone might get laid off and think well its as good a time as any to retire... (or be a sahm, etc)

[snafu]

Unemployment figures are based on numbers applying/receiving unemployment benefits. All those ineligible, expired or given up hope of acquiring work are not counted, nor are those under-employed.

The leadership race for the Republican Party has skewed media reporting and the work the elected officials were supposed to be doing. I would be writing my representatives, whatever the Party affiliation to express my concern. These guys are 'hired' by voters at $205,000. and get around $ 700,000. with all the perks for doing W-H-A-T?

[maat55]

[QUOTE]

If the goverment gave just me a million dollars I wouldn't have to work. If the government gave everyone a million dollars I would have to work because a hamburger may cost 50 grand.

Which explains why government should not spend money it does not tax.

The governemnt is taxing us too much because in a nutshell the problem with our economy is that people don't have enough money to buy all the products and services that our country can produce at full employment.

The government is taxing too much because it has obligated itself to too many intrusive programs. The individual citizens personal need for food(food cards), shelter(FHA,F&F, section 8 etc), education(DOE,federal student loans), healthcare(medicaid, medicare,Obamacare,), retirements(SS,disability) and incomes(unemployment,welfare)are not the business of the federal government. In making it so, they have completely eroded the free market system. Add to this multitudes of unnecessary regulation(minimum wage laws, excessive OASHA and EPA) and tax disincentives we cannot creat jobs to keep up with population growth.

Government spending(inflation and mal-investment) is not a solution for the lack of spending, allowing prices to adjust to the market is.

I'm not a Keynesian. I think the MMTers have a more correct explaination for how the economy works.

Advocating that the government spend to make up for the private sector is a Keynesian policy.

So giving people more of their money back is too much government involvement?

It is a good idea when attached to much lower government spending.