Extend Payroll Tax Cut for 2012?

 "The average family held onto $935 more of their hard-earned dollars this year. We need to assure those families that they can rely on that tax cut next year as well,” stated Senator Reid.  Senator Reid is talking about a 2% payroll tax holiday that started a year ago and is scheduled to expire the 31^st of December.  According to Andrew Taylor, of the Associated Press, President Obama has a plan “to cut in half every worker's payroll taxes next year — paid for by a 3.25 percent tax surcharge on the very wealthy.” 

Republicans of course do not like the idea and our likely to oppose it due to the fact that the wealthy will be paying a tax surcharge.  Andrew Taylor also wrote, “Joint Tax Committee estimated about 34% of small business income would be affected by the proposed surcharge under the Obama plan.”  Is it fair that the wealthy have to pay this tax in order for the middle class to stay afloat?  I don’t necessarily think it’s fair that just because you make more money you should pay more taxes; or that the wealthy should be made responsible for the fact that we are in a bad economic state.  Would the wealthy have to pay that surcharge if the economy was doing well? Probably not. 

The problem still remains; our economy is likely to become worse off if that payroll tax cut isn’t extended next year. Barclay's analyst Michael Pond says that if we don’t get the payroll tax cut extended, “our growth forecast frankly will probably be dropped down from about 2.5 percent in Q1 down to around 1 percent. It’s that big.”  Many state that the payroll tax cut didn’t help stimulate the economy; but if the above statement by Pond is true, and the economy will suffer without it, then it had to have affected the economy in a good way.

America is looking for quick, sort run solutions to our economic problem; when even if one is found it isn’t sure to last.  America needs to relax and begin seeing long run possibilities.  The payroll tax extension has made a difference; I can personally say I felt the difference.  The fact is it does need to be extended and neither the Democrats nor the Republicans are denying it.  Found out how much you may be paying next year if the payroll tax cut isn’t extended by licking here.  

Education: The Cost of Ignorance and My Thoughts

 “Education: The Cost of Ignorance”, a commentary by Renee D. expresses how America is expected to be “ahead of other countries” educationally and yet does not receive the support necessary to achieve that goal.  Renee believes that teachers are at the root of good education and that with budget cuts on education, teacher moral is lost and education suffers.  She provides a statement from Senator Richard Durbin which emphasizes her argument that education is necessary especially during difficult times because it can be what turns our economic future around.  Senator Durbin states, ““we’re trying to make sure we save these jobs and give our students a good education across America in these difficult times.” 

I believe Renee’s argument is more likely directed at a Democratic audience since they are more likely to support government spending which is what will need to happen just to keep some public school teachers on the job.  The article, “Senate rejects bill to keep teachers, first responders on job”, that Renee refers to also leads me to believe that her argument is directed at a Democratic audience because the article talks about how all of the Republicans in Congress rejected the bill that would keep teachers on the job. 

Renee’s commentary is definitely logical as it touches upon things that don’t need much research to prove their truths.  Like Renee’s comment that “the less educated an individual is, the more likely they will need assistance because they are not able to make it in today’s demanding workforce.”  Renee makes a very clear and forward argument that “education is the main factor that can enrich our future.”  I think that we are so focused on the short run answers to our economy that we have forgotten how important human capital is to our long run economy which is just as important if not more important; after all we do have to start somewhere.