Tax holiday bill picks up steam

WorldNetDaily ^ | 12/14/08

[Sammy67]

No other stimulus provision will be as immediate and as effective,' says small business lobby

Posted: December 14, 2008 10:51 pm Eastern

© 2008 WorldNetDaily

WASHINGTON – Big business bailouts and "economic stimulus packages" are all the rage in the Capitol these days.

Most involve massive transfers of wealth from taxpayers to government-directed projects.

But a new and very different bill, proposed by a heretofore little-known congressman from Texas, is gaining traction from Republicans – and even a few Democrats, according to the sponsor.

It's called "the tax-holiday plan." And one version of it picked up support from the National Federation of Independent Businesses, the nation's largest small business advocacy organization over the weekend.

"If Congress wants to jumpstart this economy, they need to do something to help small business owners gain confidence that now is a good time to grow their businesses and create new jobs," said Dan Danner, executive vice president of the NFIB. "Passing a six-month payroll tax holiday would do just that by putting more money in the hands of small business owners to invest in their business and by giving employees more

[GOPGuide]

A payroll tax holiday would be great at reducing labor costs, and, somewhat mitigating job losses.

[TortReformer]

Seems like a great idea....

[upchuck]

Michele Bachmann is on board with this proposal.

I think it's a great idea.

The idea that people will see exactly what the govt is taking from their check is appealing. But not to the RATS, I'm sure :)

[ari-freedom]

I don’t get this. Aren’t Republicans supposed to be for getting rid of the deficit? How will this help balance the budget?
Yes, we should balance the budget by cutting taxes and spending. We did that in the 90’s. But this won’t help at all.

[jwparkerjr]

It’s a bit like treating a patient who shows up at the ER with a life-threatening gunshot wound to the abdomen. In the course of examining the wound the discover he also has a serious disturbance in the rhythm of his heart. Both need to be addressed, but the gunshot wound will kill him in minutes, the arrhythmia will get him some day. Do you ignore the rhythm disturbance and concentrate on the gunshot or the other way around?

The current fiscal problems threaten our way of life today. As bad as it is, the inability or unwillingness to force a balanced budget, and the deficit that goes along with that is something that is probably best addressed after we get some control over the current crisis.

But you are certainly correct, it’s a problem that simply MUST be addressed, and very soon. A big part of the problem is that we are expecting the very people whose inability to perform their job in the first place to fix the problem! Ain’t gonna happen! No way. They got us into this pickle because they lack both the ability and willingness, self-discipline, to be in charge of other people’s money.

I don’t think the voters will ever get the testicular fortitude to kick out the whole damned mess of them and start over from scratch. Failing in that the next best hope is a financial collapse that will prevent them from getting any money to spend. Sad.

[Cboldt]

-- Aren't Republicans supposed to be for getting rid of the deficit? --

As a point of bullshit talking purposes, Republicans are for shrinking the government. But when that talking point collapses, they are exactly like Democrats is either getting rid of the deficit (higher taxes), or making sure the taxpayer is paid with his own money.

[Mr. Jeeves]

Democrats will never go for this proposal, since there is no part of it that can be used to directly redistribute government funds to their supporters.

[ari-freedom]

The debt is the problem that caused this collapse. It’s not like during Carter when the top tax rate was over 70%. Bush already cut taxes and we still have this recession. More debt will just bankrupt America.

[Dawn531]

I also believe the Dems wouldn’t go for it, because there is a large portion of the “people” it wouldn’t help...mainly those who don’t pay taxes, and to a Democrat that would be considered anathema.

[Man50D]

A permanent tax holiday plan has been before Congress since 1999 and gaining momentum. It's called The Fair Tax Act(HR25/S1025). It would replace all federal income taxes with a national sales tax/consumption tax and abolish the IRS. Fair Tax ping!

[Right Wing Assault]

They just gave away thousands of dollars of each family’s money. Now they want to give a pittance back? Thanks for thinking of us!

[MarkL]

It’s never going to happen...

One of the greatest evils ever foisted on a free society is the concept of “withholdings,” where the employer is tasked with withholding the government taxes from the employee’s paycheck, so the employee doesn’t have to bother with it.

Has anyone bothered asking a co-worker “how much did you pay in taxes last year?” The most common answers are “I got back $xxx” or “I only owed $xxx.” In those cases, these people have no idea how much they actually paid in taxes.

If the “tax holiday” goes through, all of a sudden you’re going to see people realizing just how much they’re giving up to taxes... For instance, my company still gave out a Christmas bonus this year... It was $300... I saw an additional $166.50 in my paycheck. But I was perfectly aware of just how much I was paying in taxes in the first place. And I’m not particularly happy about it. Can you imagine the people who actually realize just how much they pay in taxes for the first time? There will be a tax revolt. And the government just can’t allow that to happen.

Mark

[stockpirate]

interesting money ping

[DivaDelMar]

Unfortunately, I agree with your assessment. The government just can’t/won’t allow the sheople to be shaken from their collective stupor.

Once the American people stop thinking in terms of net pay, it’s all over for the income tax.

[sickoflibs]

RE : “Aren’t Republicans supposed to be for getting rid of the deficit?”

We know that republicans couldnt care less about the deficit, no one seems to since 2001.
Not only is this tax proposal not going anyplace but it may also continue to promote the idea that the government (ie Obama ) can print endless amounts of money for his public works programs. Have these folks heard that democrats have taken over anything. How could this have a chance ,unless it can get added to the democrats bills as an amendment?

How would this idea possibly de-rail the democrats plans?

[ari-freedom]

the whole idea is Keynesian and I really don’t want to give any credence to that crackpot theory

[mathluv]

We have this ‘recession’ thanks to the dims insisting that banks loan money to people who can’t/won’t pay it back. President Bush got us tax cuts, which grew the economy. We have overcome 9-11 and the hit that was on the economy. He has not fought dims as hard as he is fighting the terrorists. That and the constant media-bashing results in what we have today.

[sickoflibs]

It’s the opposite of what Fred Thompson and Peter Schiff are saying, that we borrow and consume too much, and save an produce too little.

Aside from economics I would be happy if Republicans had a coherent ‘derail democrats’ strategy and don’t see how this fits anyplace. Obama will be raising taxes as part of a debt crisis 2010 or 2011, will they look responsible when they do it?. Tax cuts went down with McCain.

http://www.thenewamerican.com/economy/commentary-mainmenu-43/524

[RayChuang88]

This is all the reason the FairTax is needed more than ever. We need a tax system that ENCOURAGES saving and investing, not the other way around. By encouraging savings and investing, that will at once start to wean Americans off needing to going into deep debt for economic advancement; imagine being able to buy a house or automobile in cash or with a much small loan because you can afford a much bigger down payment.

[MrB]

Oh, they’ll never allow it to happen, for your reason, of course,

but for the bigger reason that once the working public sees how much they COULD be taking home without the gov’t confiscating it before they even see it,

they will revolt when the holiday is over.

[Sacajaweau]

401k's was a government sponsored savings plan....These people have been rocked by the market.

People aren't going to be very quick about putting their money anywhere except into insured accounts or under the mattress....and when you have raw "extra cash"...you just like to watch it stay there. It's a feel good thing.

[Sacajaweau]

401k's was a government sponsored savings plan....These people have been rocked by the market.

People aren't going to be very quick about putting their money anywhere except into insured accounts or under the mattress....and when you have raw "extra cash"...you just like to watch it stay there. It's a feel good thing.

[PghBaldy]

“Cept they would be lying by saying tht, or hypocrites. They always say poor people pay FICA/SS/Medicare, even if theydont pay income taxes. Everyone working supposedly pays these taxes.

[adorno]

"Passing a six-month payroll tax holiday would do just that by putting more money in the hands of small business owners to invest in their business and by giving employees more of their own money to spend wherever they see fit."

Hmm. Sounds very close to my idea from 1 1/2 weeks ago: http://www.freerepublic.com/focus/news/2143373/posts?page=41#41

The only thing that can break us out of the tailspin we're on is to cut taxes and spending drastically. Taxes should probably be cut to perhaps 10% for individuals and businesses, and new businesses or startups should probably be taxed at about 5% or nothing until they've established themselves and have shown growth for at least 2 years. Those moves alone would spark the greatest recovery ever in any economy. Spending should be frozen and unnecessary programs should be cut or eliminated altogether.

Cutting taxes and spending would do far more for a recovery than bailing out businesses and taking the country towards higher debt and ruination. It's the only thing that will work.

Seems like those people in congress are borrowing, free of charge, many of the ideas from Free Republic. Perhaps we should be running the country. Now doubt, we could do a much better job than those in charge now.

[adorno]

Democrats will never go for this proposal, since there is no part of it that can be used to directly redistribute government funds to their supporters.

Thre is no such thing as "government funds".

[adorno]

A permanent tax holiday plan has been before Congress since 1999 and gaining momentum.

The fair tax idea is dead. For a few years anyway. The country has actually gone backwards in the last 2 elections cycles.

With democrats in control of both houses of congress and of the executive, it will be many years before the fair tax has any chance at all to even be discussed.

The fair tax is to democrats as sunshine is to vampires.

Before the fair tax has any chance at all, we need to regain control of congress with enough republicans and perhaps even a bunch of libertarians. And even when we regain control, we need to have super-majorities in order to get any significant programs passed, not to mention the fair tax.

[wastedyears]

It’s a goal of mine to buy my first used car, something I’d like, in cash.

[RayChuang88]

Actually, under FairTax, you're going to see enormous competition for various savings plans because of the very fact people can now save and invest without the IRS taking a bite out of the savings or investment account. We'll have a situation where banks and financial institutions are going to be throwing a lot of freebies at you to put your money there, just like it was some 45 years ago.

[RetiredArmy]

Now it will be bailout USA day.

[Man50D]

The fair tax idea is dead. For a few years anyway. The country has actually gone backwards in the last 2 elections cycles.
I don't know how you define "backwards" but The number of Fair Tax cosponsors has increased with each session fo Congress since The Fair Tax was first introduced in 1999.


With democrats in control of both houses of congress and of the executive, it will be many years before the fair tax has any chance at all to even be discussed.

Before the fair tax has any chance at all, we need to regain control of congress with enough republicans and perhaps even a bunch of libertarians. And even when we regain control, we need to have super-majorities in order to get any significant programs passed, not to mention the fair tax.

That would be true if The Fair Tax was a partisan issue. Fair Tax has been and will continue to be presented as a non partisan issue. There has already been discussion with the Obama camp. You're statements also presumes the power lies with Congress critters. That is precisely what they want people to think. The fact is the power lies with the people as our founding fathers intended when they wrote the Constitution. The 76 Fair Tax cosponsors didn't sign on out of altruism. They did so due to increased pressure form their constituents.