More and more influential conservatives and conservative media is denouncing the GOP obstruction that is leading to an increase in the payroll tax.
Background: Last year, President Obama announced a cut in the payroll tax for 2011, from 6.2% to 4.2%. That cut was temporary, and set to expire on January 1st, 2012. This means roughly a $40 increase in taxes per pay period (roughly $1000 a year) for the average middle class American family. Each house of Congress passed different versions — the House passed a 1 year extension but attached the construction of an oil pipeline to the bill. The Senate passed a two month extension with the caveat that a further extension will be negotiated before the end of February. The Republicans are playing politics with the extension, and prepared to allow the tax cut to expire to prove a political score against President Obama. However, in the meantime they’ve upset prominent conservatives and media — namely Scott Brown, Republican Senator from Massachusetts, and The Wall Street Journal, the preeminent conservative newspaper in the United States.
From the Boston Globe:
Senator Scott Brown, positioning himself on the frontline of frustration between some moderate Senate Republicans and House GOP leaders, today again denounced his House colleagues over their blocking of a bipartisan compromise that would extend the payroll tax cut for two months.
“It angers me that House Republicans would rather continue playing politics than find solutions,’’ the Massachusetts Republican said in a statement released minutes after the Republican-controlled House voted against the compromise, which the Senate had overwhelmingly passed on Saturday. “Their actions will hurt American families and be detrimental to our fragile economy.
“We are Americans first; now is not the time for drawing lines in the sand.’’
Brown lambasted House Republicans yesterday before the vote, saying their opposition was “irresponsible and wrong.”
The Wall Street Journal echoes a similar line:
House Republicans yesterday voted down the Senate’s two-month extension of the two-percentage-point payroll tax holiday to 4.2% from 6.2%. They say the short extension makes no economic sense, but then neither does a one-year extension. No employer is going to hire a worker based on such a small and temporary decrease in employment costs, as this year’s tax holiday has demonstrated. The entire exercise is political, but Republicans have thoroughly botched the politics.
Their first mistake was adopting the President’s language that he is proposing a tax cut rather than calling it a temporary tax holiday. People will understand the difference—and discount the benefit….
The politics that the Republicans are playing is blowing up in their faces…they have a strategy of denying the President a victory no matter how small and no matter how good it is for the American middle class, and it’s blowing up in their faces this time. The WSJ ends with a piece of political advice…
At this stage, Republicans would do best to cut their losses and find a way to extend the payroll holiday quickly. Then go home and return in January with a united House-Senate strategy that forces Democrats to make specific policy choices that highlight the differences between the parties on spending, taxes and regulation. Wisconsin freshman Senator Ron Johnson has been floating a useful agenda for such a strategy. The alternative is more chaotic retreat and the return of all-Democratic rule.
Despite the politics of the situation, the payroll tax cut should be extended for one simple reason: it’s good policy. Giving millions of Americans a 2% tax increase is not a good thing to do in a recession no matter how long the extension. Get it done.
UPDATE:
Looks like another Republican is coming to his senses:
WASHINGTON — Sen. John McCain said Congress’ failure to reach agreement on legislation extending a payroll tax cut for working Americans “hurts the Republican Party.” The GOP’s 2008 presidential nominee said his party made a mistake in voting down the Senate-passed version of a bill that would have kept the current payroll tax relief intact for at least two more months.
McCain told CBS’s “The Early Show” he feels badly for 160 million Americans, whom he called “innocent bystanders.” He said the House should pass the same bill that cleared the Senate “but put a year on it” and send it back.
McCain said in the CBS interview, “This is really tragic for the American people, and I would say that next November, no incumbent is safe, nor should they be.”