Why Republicans turned against payroll tax cuts

posted by
August 25, 2011
The New Republic
by Jonathan Chait  
Posted in Commentary, PND Commentary

"In 2001, as the economy slowed, Republicans endorsed temporary payroll tax cuts in order to boost demand. And again in 2008, when the economy slowed, they endorsed payroll tax cuts to boost demand. ... The current Republican position, when faced with far higher unemployment than in those previous situations, is to oppose temporary payroll tax cuts. Paul Ryan, the party's new economic thought leader, now argues that demand-side stimulus merely provides a 'sugar high.' That didn't stop him from voting for temporary payroll tax cuts in 2001 and 2008. He was okay with giving the candy bar to the mildly hungry fellow in 2001 and to the same, hungrier guy in 2008, but not to the same, now starving man today." [editor's note: I still think a "FICA floor," whether temporary or permanent, has value - SAT] (08/24/11)


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