Obama is predicted to include a proposal in his anticipated “Jobs Plan” that would extend the existing payroll tax cuts.   These tax cuts would leave the employee’s contribution to FICA at 4.2%.   However, if these cuts are allowed to expire, the employee’s rate will go back up to 6.2%.

From this recent Huffington Post article:

But many of the same Republicans who are fiercely protective of tax cuts for the wealthy have already said they oppose Obama’s plan to extend the payroll tax cut for low income Americans.

“It’s always a net positive to let taxpayers keep more of what they earn,” Rep. Jeb Hensarling (R-Texas) told the AP, “but not all tax relief is created equal for the purposes of helping to get the economy moving again.”

Rep. David Camp (R-Mich.), chairman of the Ways and Means Committee, said he also opposed the 12-month tax cut because it would cost the government about $120 billion next year if it were renewed.

Axelrod suggested on Sunday that the Republicans’ position was hypocritical.

There’s not much about anything connected with the Obama administration with which I can agree.  But I must say this is a rare moment when I agree with Axelrod’s statement.

The GOP fought tooth and nail to avoid bumping the rates on capital gains – you know, that favored category of income that mostly very wealthy people enjoy.   The GOP pols stamp their feet and snort at the idea that we can’t bump taxes on capital gains from 15%, while you and I (presuming you work, too) pay quite a bit more than that.  Finally, we get a small break of 2%, and at least some in the GOP are ready to let it expire and have our taxes go back up.   Just exactly who are they representing?

Jeff Matthews

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