And How It Can Trip Them Up Now
Ken O’Brien
The current Washington soap opera relates to the extension of payroll tax cuts that would benefit the vast majority of Americans in the middle class.
The core issue is the manner in which we would pay for this tax holiday.
Democrats have proposed a surtax on those earning in excess of $1 million per year
Republicans initially proposed further spending cuts. Now, in the absurd compromise for a two month extension, the proposal is to have a surcharge on mortgage fees for Freddie Mac and Fannie Mae mortgages.
However, it is acknowledged that such a “pay for” would be insufficient for a full year extension.
So, come January, the battle will be joined again on the issue of how to pay for these payroll tax cuts.
