Feeling Weight of Slowdown, Lott Considers Payroll Tax Cut

The New York Times ^ | September 10, 2001 | ALISON MITCHELL and RICHARD W. STEVENSON

[sarcasm]

ASHINGTON, Sept. 10 — Senator Trent Lott of Mississippi, the Republican minority leader, said today that he would be willing to consider a Democratic proposal to reduce the payroll taxes levied on all workers and employers, as both parties sought ways to blunt the economic and political impact of rising unemployment and slowing growth.

"I would like to at least see how that would work, discuss it with Democrats," Mr. Lott said at a news conference.

His openness to such a step — which has been floated by a few Democrats without any details — was evidence of the intensifying pressure on both parties to appear responsive to the sharp slowdown in the economy.

Mr. Lott tied his willingness to accept a reduction in the payroll tax to his longstanding call for a reduction in the capital gains tax.

Mr. Lott's comments came as conservatives began complaining openly that President Bush was not doing enough to fight off the possibility of a full-fledged recession and to protect his party's members of Congress who face the prospect of running for re-election next year in a weak economy.

The concern among Republicans is palpable. Last week on the same night that President Bush was toasting the Mexican president at a state dinner, rank-and-file Congressional Republicans huddled on Capitol Hill at a dinner of their own that turned into a gripe session about the president's failure to provide a convincing message on the economy.

One lawmaker, Representative Jack Kingston, Republican of Georgia, demanded to know how many people had even realized that Mr. Bush had been at an environmental event in Colorado as Congress was in recess. Only a few hands went up. Another Republican, Representative J.D. Hayworth of Arizona, complained that it was hard to get out a message if the White House lectern had a message saying, "Gone Fishing."

Causing even more ire, Republicans said, was the fact that Nicholas Calio, Mr. Bush's Congressional liaison, gave a pep talk about Mr. Bush's economic plan but left before he could hear their concerns and questions.

His presentation came jarringly just after David Winston, a Republican pollster, shared a sheaf of bad numbers, showing that Democrats held an advantage in the race to control Congress and that there had been a large drop in the percentage of voters who feel the country is on the right track.

[DLfromthedesert]

So if Social Security has to accommodate the retirement of the boomers in 10 years, is cutting the payroll tax the intelligent thing to do?

[vannrox]

CUT THE TAX!

[teletech]

I will predict that if something isn't done by Bush/Republicans in Congress, we will lose BOTH house of Congress in 2002! It may already be to late. I'm no economist but I have felt for a while now that MY President hasn't done enough to turn this around. (sigh)

[Tuco-bad]

About time!

The payroll tax is much too much high, and has been "killing" the middleclass.

Go Chester (Trent) Lott!!!!!!

[DLfromthedesert]

This is NOT the tax to cut. The tax that should be rolled back is the one Clinton and the Dems imposed on Social Security recipients; you know, rich couples who make over $32,000.

Part of this tax could be used to privatize the system, so people paying into it can get a better return, but this would be a stupid tax to cut if people are really concerned about the solvency of the SS system.

[DLfromthedesert]

OR we could cut the tax and phase out Social Security. Can't have it both ways.

[truth_eagle]

Bad taco - Where have you been?! You haven’t popped up since the election.

[truth_eagle]

FICA is so obscene! A lot of middle class, especially small business owners, pay more in self-employment tax than in regular taxes.

CUT IT!!!

[DLfromthedesert]

Fine. Then should we phase out Social Security?

[Willie Green]

Auto industry nips at 401(k) plans to save

[Jolly Rodgers]

Then should we phase out Social Security?

ABSOLUTELY!

[swampfox98]

Bush had better listen to Chester on this one.

[Frohickey]

Fine. Then should we phase out Social Security?

Heck yeah!!! Do it now, the sooner the better.

[DLfromthedesert]

I agree, but the fact is it was the Dems who initially proposed this tax cut, and do you think they will agree? Of course not; they'll want to make it up from another source, either defense or raise other taxes.

[ThinkDifferent]

There's nothing magical about the payroll tax relative to Social Security funding. Cutting the payroll tax by $100 billion has exactly the same impact on Social Security's solvency as cutting capital gains taxes by $100 billion. All taxes end up in one big pile in Washington.

I'd say this is an excellent time to "compromise" with the liberals by cutting both the payroll and capital gains taxes. Of course, corresponding spending cuts would be advised as well.

[truth_eagle]

Fine. Then should we phase out Social Security?

Your response would have made sense if I said "Abolish it", but I did not. I said "Cut it". So what are you talking about?

[Tuco-bad]

OR we could cut the tax and phase out Social Security. Can't have it both ways.

Yes you can!!!

Any shortfalls can simply be made up by transferring money from general revenue to the Social Security System.

[BFO]

Oh boy, the demagoguery will be unbelievable. The "payroll tax" is actually FICA and Medicare, which is also the "Social Security Tax" and the "Medicare Tax". It is the true theoretical source of Social Security and Medicare funding (irrespective of what the funds are actually spent on once they come through the door). The Dems would be handed a spiked bat with which to club the Pubs.

Should it be cut? Of course.
Can it be cut without political bloodshed? No, and therefore it won't happen.

[truth_eagle]

The republic didn't collapse before the Demonrats increased payroll taxes. It just allowed for more waste, fraud, and socialism.

Back to the desert for you for some more quality "think time".