Payroll Tax Cut Drama

The payroll tax cut battle has once again brought to light the fact that our Representatives and Senators all …….suck.  Why they go so far out of their way to make this point is beyond me, but they really seem to relish their ineptitude.

So for those viewing at home, lets recap what has happened recently.  The Senate votes in an overwhelming bi-partisan fashion to pass a 2 month extension to the payroll tax cut and extend unemployment insurance for the same two months.  Happy with their work, they leave town with no plans of coming back to work over the holidays.  Of course the House hasn't voted on the legislation yet.  They decide that a 2 month extension is stupid, and want the payroll tax cut to be extended for a year.  Remember the Democrats control the Senate and Republicans control the House.  The Republicans in the House vote to move the legislation to a committee to negotiate the differences with the Senate.  They name their reps to the committee.  Ummmm, remember the part a few sentences ago where the Senators leave town?  Yup.  There is no one for the House people to meet with and negotiate.  How did they miss that?  Gee whiz.

All these moves are just so lame.  How is it that their approval is over 10%?  The posturing by both sides is just precious.  The Democrats are now pointing out that they are the party looking to help with tax cuts and Republicans are the ones standing in the way.  Even if they are only for two months.   In the first place, how ridiculous is a 2 month tax cut?  Did anyone consider that this is probably nearly impossible to implement on that short a time-frame.  The software changes have to be crazy.  Especially if the tax changes to something else after the two months.

The other thing to look at is how this is being paid for.  This two month extension would be paid for by adding a tax on new mortgages and refis starting in January of  2012.  This would mean that a person with a $200,000 mortgage would pay an extra $17/month for the life of the loan.  The continuation of the tax cut would mean $20/week for the average family.  There will be more and more rhetoric coming soon.  Can't wait.

Flat tax and term limits.  Didn't say perfect, just better.