Payroll tax cut is absurd if you do not cut equal amount of promised benes to recipients.
The law requires the difference be made up out of the General Revenues, in other words, money borrowed from China. It was still a stupid idea, just for different reasons. It actually is a redistribution scheme, since the SS Payroll tax is distinctly regressive, Warren Buffet's Secretary actually does pay at a much higher rate than the Oracle of Omaha, the money is mostly coming from the top income people.
This is an anathema to a lot of liberals, because it gives the game away, Social Security has now officially become a redistribution scheme, not an insurance scheme. I have a defined benefits retirement program with my company and a 401k. If I retire today and took a second job elsewhere, they would still be on the hook for 100% of my retirement pay and my 401k and outside income would have no effect, whatsoever. If I retire next year and take early retirement form Social Security, I lose at least one dollar for every two dollars I make working! For someone like me, the actuarial value of my SS benefits is very much smaller, like 50% of my and my employers "contributions".
To top it off, when they "needs test" Social Security (which will happen), folks like me who were frugal, saved, worked for lower pay at jobs with pension plans and retire later will get a further screwing.
The payroll tax cut Obama proposed is asinine since it only helps those that are lucky enough to STILL have a job. And yes, if it ends up “forcing” gov to cut benefits to those on SSN, the ones that don’t have jobs and can’t find jobs and are stuggling enough as it is will only be put further into the ‘poor house’ and onto the poverty level ‘rolls’.
Of course, destroying the middle class and those that were middle class pre-Obama is exactly his intention.