The reduction in Social Security withholding that President Obama got through congress last year might be one of the most shrewd political moves he has made. Think about the implications involved with this reduction.
1. The Social Security Fund will get less money to bolster the already flagging program. Even though the Politicians call it one of the most popular programs, nobody wants to actually talk about it. It needs fixing!
2. The ruling party has clout to get votes by forcing an extension and as such controls the length of that extension. If the reduction had passed for 1 year right now two things would not have happened. The Republicans would not have looked like the Grinch for demanding it (although the did concede 2 months) and the Democrats would not have another opportunity to beat the evil Republicans over the head with this tax holiday again thereby getting votes in November. There would have been no ammunition had they agreed to the one year now! Count on ads about the evil Republicans and the terrorist Tea party. It has already started.
3. The temporary nature, just like the Bush cuts, create a big stick to beat the minority with. The act of extending the cut makes the majority look altruistic and the minority evil for opposing the extension. But either they must end or they must become permanent. In order to do that under the current situation these cuts really do need to be accompanied by cuts. That was the gist of the Republican argument. But Mitch McConnell thinking he had a way out foolishly make a deal with Harry Reid to extend the cuts for only 2 months. This deal pretty much cut the legs out from under the offset argument by the House republicans.
The lessons of both the Bush and Obama tax cuts is that you do not increase spending and cut taxes at the same time. The national debt in the last 11 years has risen from 5 trillion to almost 15 trillion. With half of that increase since Obama took office. But during the Bush-era we did increase our debt almost 5 trillion in 8 years.
The President talks about being a tax cutter but he is also a big spender. Bush was a spender but not to the scale of this administration.
It is a testament to how much the mind-set of the American People has devolved into a gimme mentality. Social Security is not considered a handout. But it is not self-sufficient, it may not be a handout, but it is a drag on the taxpayers of this country. Welfare is a handout and at best should be a temporary situation but that is no longer the case. Allowing people to live off the largesse of the Government is not the American way. Offering people the opportunity to advance in life is the American way. I could go on.
We need real tax reform and spending cuts. That is the formula for success. No more tax holidays, please!