« Selling the New Nixon, part i
Gingrich Amid Rapidly Rising Polls: “I’m Going to Be the Nominee” (UPDATED) »
In these per’lous times, it’s good to see that at least one major political party still has a sense of humor. I refer, of course, to the Republicans. Their latest beau jeste, in he form of a proposal to keep funded the Payroll Tax reduction for all working Americans, had me rolling with laughter when I read it over.
The Democrats want to fund this lower Payroll Tax rate with a surtax of 3 1/2 percent on those making more than a million dollars a year. But where’s the humor in that? Those fun-loving congressional Republicans, however have come up an alternative that’s a hoot-and-a-half.
To fund this reduced Payroll Tax, this proposal would prohibit million-a-year-plus earners from collecting unemployment insurance and getting food stamps (this is the Republicans’ joke, not mine). It would also make them pay the full cost of Medicare Parts B&D. For its major savings to offset a lower Payroll Tax, it would not give federal employees any pay raises through 2015, and would reduce the federal work force by 10 percent, or about 200,000 jobs.
Oh, and here’s something else of interest to those of us seeking some yucks. It would put a line on federal tax forms that would allow millionaires and billionaires to voluntarily pay extra taxes. This, doubtless, was a wee prank on those naughty ‘patriotic millionaires’ who came to Washington a few weeks back to say that rich folks like themselves should pay more taxes — a Republican taboo.
The funny thing here is that there’s already a line on federal tax forms that allows anyone to voluntarily contribute anything they want to help reduce the federal debt. Apparently, though, no Republican congressman, or anyone on their staffs, knew this because they can all afford to hire someone else to do their taxes.
Ah, but I digress. Back to the main features of this hysterically idiotic Republican proposal
Folks making a million or more a year do not generally apply for food stamps, so any savings here would be…let us say quite modest. Also, those making more than a million a year are employed and thus do not collect unemployment insurance, which suggests savings here might be even more modest.
Medicare Parts B&D are basic doctor and outpatient services, and drug coverage. So you keep million-or-better earners from getting these benefits and some money might actually be saved but…
But only people over 65 years old or the disabled qualify for Medicare benefits. Young rich folks wouldn’t be bothered by this “saving.” And neither would very high earners who stop bothering to earn when they get to 65 and beyond. Not much savings here either.
The really big savings in this Republican hoot-a-thon would come from eliminating salary increases of federal employees through 2015. Kind of hard when the CPI is rising at almost 4 percent a year. And far more savings are to come from getting rid of 200,000 federal jobs.
Jobs were supposed to be important to Republicans. So getting rid of 200,000 of them, 10 percent of the federal workforce, would seem guaranteed to increase unemployment, rather than employment, in coming years.
Or maybe I’m wrong, Maybe actual jobs are not that important to Republicans. Maybe only protecting the interests of rich folks they call “job creators” is their priority.
Well, that’s it from here. An old Laurel and Hardy movie is about to start on the tube. Don’t want to miss it. Their antics are almost as funny as those of congressional Republicans.
More from this writer at wallstreetpoet.com
It is very simple, “Anything to destroy Obama.” Party first, country second.
Another perspective from Tom Coburn’s website
http://coburn.senate.gov/public/index.cfm/rightnow
• Thousands of individuals with incomes exceeding $1 million are receiving unemployment benefits. As many as 2,840 households who reported an income of $1 million or more on their tax returns were paid a total of $18.6 million in UI benefits in 2008, according to the Internal Revenue Service. This included more than 800 earning over $2 million and 17 with incomes exceeding $10 million. In all, multimillionaires were paid $5.2 million in jobless benefits in 2008. When the median income of working Americans is less than $50,000, it is illogical, even asinine, for the government to consider an individual earning millions of dollars as unemployed and thereby eligible for jobless benefits. Why should someone struggling to make ends meet working full time, or two jobs, pay into a system to provide benefits to someone who does not work yet earns millions of dollars a year?
And more from Tom Coburn
Coburn is not calling for an end to Social Security retirement payments to millionaires, since they pay into the system. But he says the payments should be “restrained.” On Medicare, Coburn is recommending that those with adjusted gross incomes of $1 million or more pay the full cost of their premiums for Part B insurance, which covers physician visits and outpatient services, and Part D, which covers prescription drugs.
Read more: http://newsok.com/oklahoma-sen.-tom-coburn-releases-report-on-government-subsidies-to-millionaires/article/3623174#ixzz1fOMnkBs2
Note – It is the full cost of premiums, not the full cost of services that is being proposed. I thought they were paying the full cost in medicare taxes?
The Ohioan: “…it is illogical, even asinine, for the government to consider an individual earning millions of dollars as unemployed and thereby eligible for jobless benefits. Why should someone struggling to make ends meet working full time, or two jobs, pay into a system to provide benefits to someone who does not work yet earns millions of dollars a year?”
They may earn millions of dollars, but in order to collect unemployment they have to be unemployed, meaning they were employed at one point in time. And if they were employed, then they paid into it. If you pay into something, regardless of how much you earn, then shouldn’t you be able to collect the benefit?
$18.6 million paid to high earners in UI is peanuts and doesn’t solve the budget mess.
Though I agree that paying unemployment to high earners does seem to go against the spirit of the benefit.
Stockboy
You can argue with the one Republican that seems to see the assininity of paying millions in unemployment insurance to multimillionaires, even if they were employed and then unemployed, – I prefer to let him make his point – and change the law if he can.
Surely a multimillionaire doesn’t NEED to be unemployed. He can hire himself, if nothing else.
True, $18.6 million won’t solve the budget mess, but it would be one more drop in the bucket of needed revenue.