Payroll Tax Debate
Congress has been in the midst of a debate about payroll tax legislation. Congressman McClintock delivered floor remarks in the House about the various proposals, including on December 15th when he delivered remarks titled “Fixing the Payroll Tax:”
“One of the items of unfinished business remaining before this session is extending the payroll tax cut of last year that funds Social Security,” stated the Congressman.
“It’s an infra-marginal tax cut, meaning that it doesn’t change economic incentives and therefore it doesn’t produce lasting economic growth. But it does provide great relief to working families, allowing them to keep more of their earnings at a time of declining incomes, shriveling assets and rising prices, and it should be extended.
“But it must be extended responsibly to avoid doing further damage either to the economy or to the Social Security system.”