Friday, December 02, 2011

Both Donkeys and Elephants migrate toward viewing FICA as a "welfare" tax

Despite failure of the Supercommittee to deliver its “Thanksgiving Turkey”, Congress is still looking at ways to extend the FICA contribution cut as well as extend unemployment benefits.  Republicans and Democrats, as usual, disagree.  

But what’s interesting is that both parties would consider using taxes (Democrats) or increased Medicare premiums (Republicans) even right now on the wealthy to help pay for FICA tax cuts, moving it away from an annuity large funded by employee and employer contributions over the years to “welfare”.  A similar remark applies to the unemployment insurance.

The Friday morning CNN story is here.

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