In the fiscal cliff talks, I think that the Feds – both Obama & Congress – are demonstrating “no brain” thinking – working ineffectively on the wrong stuff.
- See our prior post HITS: Are you left-brained or right-brained? for details on left-brain, right-brain, whole-brain, and no-brain thinking.
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Specifically, in the fiscal cliff talks, practically all of the focus has been on jacking up the marginal tax rates for millionaires and billionaires making more than $250,000.
Payroll taxes – for Social Security & Medicare – have been largely pushed off-stage.
That’s because both Dems & the GOP seem to agree that the 2% payroll “tax holiday” should be allowed to expire.
That may be true, but I think the payroll tax structure may be the key to hitting the seemingly conflicting objectives of raising tax revenues and creating jobs.
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Let’s lay out some basics:
What happens to whom if the current payroll tax holiday expires?
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