I have been out hiking in the woods today. Nearly eight miles hiked in Busiek State Park and I feel like I have crossed over into the Twilight Zone. Obama is proposing tax cuts? Hello, are you feeling ok Dear Leader?
The Wall Street Journal outlines Obama's tax cuts as follows: "Under the White House plan, the Social Security tax paid by workers would drop temporarily by 2 percentage points, to 4.2% from 6.2%, a person familiar with the proposal said. For a worker earning $40,000, the tax savings would be $800."
As well, he is also pushing to get some of the Bush Tax cuts extended, at least for the middle class.
The Obama administration says the savings from the Social Security Tax will be used by Americans to stimulate the economy. I know it wasn't that long ago Obama was saying tax cuts don't work to stimulate the economy, and now we get this weird Social Security tax cut as the debate heats up over the Bush tax cuts. Something stinks.
The Wall Street Journal writes, "Its emergence in the broader tax negotiations is a sign that the White House is trying to break the logjam on those talks before the end of the year, when tax cuts signed into law by former President George W. Bush are due to expire."
Here's my concern. Obama has been a warrior against true tax cuts to stimulate the economy. One has to wonder if he has really come to his senses on the subject or is just using the issue to jeopardize any future tax cuts by working against any tax cuts he oversees. It will be interesting to watch.