Legislators object to temporary payroll tax cut proposition
House Budget Committee Chairman and Wisconsin Representative Paul Ryan recently denounced a temporary employer payroll cut that is being considered by the Obama administration as "sugar-high economics," according to The Hill.
The congressman recommended that the administration focus on drafting and implementing permanent tax code changes.
"Temporary tax rebates don't work to create economic growth," he said, quoted by the news source. "Permanent tax changes do."
If enacted, the temporary cut will be used to decrease the country's 9.1 percent unemployment rate, according to Bloomberg. A similar cut for payroll taxes paid by employees that occurred last December is thought to have helped kick-start the economy in the first quarter of this year.
In addition to Republican worries about the measure, some Democrats have expressed concerns about the effect a cut would have on Social Security.
Ryan and Michigan Republican Dave Camp, who chairs the House Ways & Means Committee, have suggested rewriting the tax code in order to reduce both individual and corporate tax rates to 25 percent from the current top marginal rate of 35 percent.
The congressman recommended that the administration focus on drafting and implementing permanent tax code changes.
"Temporary tax rebates don't work to create economic growth," he said, quoted by the news source. "Permanent tax changes do."
If enacted, the temporary cut will be used to decrease the country's 9.1 percent unemployment rate, according to Bloomberg. A similar cut for payroll taxes paid by employees that occurred last December is thought to have helped kick-start the economy in the first quarter of this year.
In addition to Republican worries about the measure, some Democrats have expressed concerns about the effect a cut would have on Social Security.
Ryan and Michigan Republican Dave Camp, who chairs the House Ways & Means Committee, have suggested rewriting the tax code in order to reduce both individual and corporate tax rates to 25 percent from the current top marginal rate of 35 percent.
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