Updated: February 21, 2012 at 10:58 pm PST
The president has decided that he will agree to sign off on the 2% payroll tax cut as soon as possible. This payroll tax will add about $40 back into taxpayers’ hands, which Obama says will, “help speed up this recovery”. Congress has also been working to incorporate an extension of unemployment benefits to this plan. In addition, both the tax cut and the benefits should be extended another 10 months for the American public. “Congress needs to extend that tax cut – along with vital insurance lifelines for folks who’ve lost their jobs during this recession – and they need to do it now, without drama and without delay,” Obama said.
During a recent trip to Milwaukee to visit the company Master Lock, Obama has also advocated tax cuts for companies. “Right now, companies get tax breaks for moving jobs and profits overseas,” Obama said, “Meanwhile, companies that choose to stay here in America get hit with one of the highest tax rates in the world”. The president went on to state that companies who promoted “in-sourcing” – companies that brought their business back to American soil instead of globally – will be the ones to help rebuild U.S. manufacturing.
Not everyone is in agreement with Obama’s approach to the payroll tax cut or his attitude towards tax breaks. David M. Walker, the head of the non-partisan group Comeback America Initiative, thinks Obama’s attitude is merely reflective of this election year and that all the extension will do is slap another proverbial Band-Aid on the mortal wound that is our economic structure. “It is much more about politics than economics and it represents another action to treat short-term symptoms rather than the structural diseases that threaten our future,” Walker said.
Representatives of the House went on to cite that the extension will save families at least $1000 this year, but only time will tell us if this extension will repair or further damage our fractured infrastructure.