More like Republicans have claimed that tax cuts are 'free', that they don't cost anything to anyone, that they never result in deficits, that tax cuts are good under ANY conditions even with increases in spending, and they repeated it so many times that they know if they try to press for real replacement of FICA funding that their past words will be thrown in their faces. Republicans have been the party of 'we will pay for more spending with tax cuts' so long that they are scared to argue anything now.
MSNBC is now reporting that the FICA cuts will be funded by fees paid by Fannie and Freddie for a two month extension. I have no idea if this is true. Maybe they will surprise me.
Of course taxes are just some of the components, and, as your remark explioans, it is foolish to talk about taxes as if they were "the only variables in the equation" (sorry if that sounds geeeky, that's the way I talk). I think there is a good argument to be made that higher taxes do not reduce the deficit unless the govt. spends money responsibly, and chances of that happening before everything falls apart? At least there is some relationship between "payroll taxes" and entitlement programs that already exist.
I have no confidence that raising income tax rates would lower deficits and borrowing. Hell, they are even spending the TARP money that some of the banks repaid. Irresponsible spending is poison whether taxes are high or low.
I agree that GOP characters have made statements that make "taxes" sound like a single entity. I don't know if that is what they really believed, but it does seem to give Obama and company a weapon.
You want to pay your "fair share" don't you?