Three Reasons To Be In Favor Of A Payroll Tax Cut — John T. Harvey

For at least a few moments this week, President Trump suggested a payroll tax cut to stimulate the stalling macroeconomy. Although it appears that he has already changed his mind, it’s worth taking a look at the strategy...just in case.

Let’s say for sake of argument that the negative signals we have received of late are accurate. What should we do if we slip into full-fledged recession? Cut interest rates? Lower the budget deficit? Decrease payroll taxes? It turns out that the last one is the clear and easy winner. Why?

Forbes — Pragmatic Economics
Three Reasons To Be In Favor Of A Payroll Tax Cut
John T. Harvey | Professor of Economics, Texas Christian University

When A Deficit Dingbat Speaks In A Congress, And There's No Context To Connect It To .... Is It Still Meaningless? Orrin Hatch & CBO Discuss SocSec Taxes

(Commentary posted by Roger Erickson - hat tip to John Lounsbury)

Answers to Questions From Senator Hatch About Various Options for Payroll Taxes and Social Security

What, we're gonna run out of sectors? To hide dimensionless units in?

Or, see the following.

Distributional Effects of Raising the Social Security Payroll Tax

Both of these discussions come straight from a listing in the "can't make this stuff up" department.

Either that, or they're acting out a modernist version of Alice In Blunderland, where some Mad Squatters insist that contexts mean just what their data presumptions intend them to mean, something less, and even less.

In reality, both Walter Shewhart and Robert Eisner would disagree - for completely different perspectives - but of course we're not talking reality when clueless, er, "august" entities like Hatch and CBO speak.

Or perhaps it's just a philosophical question? When a Deficit Dingbat speaks in a Congress, and there's no context to connect it to .... is it still meaningless? I think we finally have an answer! It's more clueless than a Santelli trading fiat savings bonds.

Savings rate collapses due to tax hikes. Thanks, Obama!

Take a look at this chart of the personal savings rate. You'll see that it shot higher after that huge dividend payout by corporations in Q4 2012. They were concerned about coming tax hikes and all the fiscal cliff stuff so they decided to "dissave." Those savings then went to people.

But then taxes were raised on Jan 1, 2013 and a big component of those tax increases included the payroll tax hike that President Obama backed.

So what happened?

All of those savings have been wiped out. Where did they go? To the government.

Thanks, Obama!

Mark Gongloff — The 1 Chart That Reveals Just How Grossly Unfair The U.S. Tax System Has Become

The Huffington Post
The 1 Chart That Reveals Just How Grossly Unfair The U.S. Tax System Has Become


Mark Gongloff

New GOP Tactic: "We'll Abandon Payroll Taxes if You Abandon Social Security Benefits"

commentary by Roger Erickson

Our Enemy, the Payroll Tax

Aka, "we'll agree to throw out the initiative-freezing ice-bathwater .... but only if the baby goes with it!" Doh!

Is this progress, or an insidiously brilliant & evil plan?  Crazy like a genius idiot fox?  Shouldn't be news.  It's the socio path we've chosen.

Outcomes depend on how smart the American Public is. PT Barnum is watching.

The undeniably good news is that everything finally seems to be openly listed and on the table for the GOP. The bad news is that our targeted corpse is among those exhibits, for ulterior motives still not clear even to the determined perps! Only argument is which foot to shoot first, and they're willing to trade anything on "our" behalf, even all of us. Only Wall St. could screw a market that badly.

Kneecap and trade (body politic parts) anyone? The new GOP view of capitalism is to "free up underutilized assets" by amputating a leg. After all, two legs represent redundant assets.  Even Tom Jefferson would have to give them their due. Merchants have finally found a way to outsource even the land they stand upon. Yet why stop there? If they think they no long need a country, what makes 'em think they need planet Earth either? The solar system is, after all, Centrally Planned.

PT Barnum would say to forget about Arizona. "I have a bridge in Sun City to sell you. Deals so hot that owners can only take obsession after 30 million days ... or longer.  [ps: Don't be not left behind, if you know what's good for your country.  No one will be denied public credit!  Plus, I can earn frequent liar miles if you act within the next 30 minutes.]"