Monday, November 28, 2011
Celebrate Festivus (Not The Payroll Tax Holiday)
Our of principle, I am inclined to support tax cuts, but if they are not accompanied by equal or greater spending cuts, greater debt ensues. This is especially true with the Obama Administration's foolish "payroll tax holiday," because it cuts revenue to the already troubled social security fund, hastening its inevitable insolvency. I am convinced that the economic benefits that Democratic (spending oriented) and Republican (tax cut centered) stimulus are outweighed by their costs. Specifically, many businesses are reserved about investing because of the current and projected fiscal outlook. Balancing the books through spending cuts and (to a lesser degree) tax hikes will cause a short term economic contraction, but will create an environment that will allow for greater long term economic growth. So, what are the chances that these sensible policies will be enacted? With a rapidly approaching election, the chances are slim to none. So, all we can do for now is choose to ignore the fiscally absurd Payroll Tax Holiday and choose to celebrate a more sensible one, like Festivus!