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Tim Ryan: Tax increase hypocritical
TweetBy Karl Henkel
YOUNGSTOWN
Tim Ryan says it’s a bit hypocritical for his Republican counterparts to increase taxes on middle class families.
But one of the initial Congressional debates that will happen in September will focus on the payroll tax, which this year was slashed 2 percent and has saved workers anywhere from a few hundred to a couple of thousand dollars.
Republicans want to restore the payroll tax to its pre-2010 levels, something Ryan and his fellow Democrats think could be detrimental to the economic recovery.
“I think it shows where they stand,” said Ryan, who toured the Fireline TCON, Inc. facility in Youngstown on Monday. “You see some of our friends falling all over themselves to cut taxes for millionaires and then turn around on a $1,000 tax cut for the middle class and call it sugar-high economics.”
Workers and employers normally contribute 6.2 percent of their wages — up to the first $106,800 earned — for a 12.4 percent total.
But the payroll tax cuts, approved by Congress at President Barack Obama’s request last December, reduced the workers’ portion to 4.2 percent for one year. For a person making $50,000 annually, that amounts to a $1,000 tax break.
Obama wants Congress to extend the tax cuts for another year; if that doesn’t happen, the rate returns to 6.2 percent starting Jan. 1.
There are a couple of political factors that could sway Republicans to extend the tax break. The most notable is the Taxpayer Protection Pledge crafted by Grover Norquist, president of Americans for Tax Reform and signed by many GOP leaders, who used it as a reason not to raise taxes on the richest Americans during the deficit and debt-ceiling debates last month.
The second is the recent market volatility. If Americans have smaller paychecks, they’ll be less likely to spend.
Those who rely on programs such as Social Security’s disability program also may find themselves in a precarious situation. Reports say the financially strapped Social Security disability program badly needs reform, because by 2017, there won’t be enough money to pay full benefits (only about 75 percent) to the 13.6 million who depend on them.
There are a couple of solutions, and none are popular.
Congress could reapportion funds from the retirement program — as it did in 1994 — but many consider that a “rob Peter to pay Paul” scenario; funding for Social Security could be compromised within the next three decades.
Congress also could put tougher restrictions on who receives disability benefits. Currently, a person needs to have worked for 40 quarters and must meet a strict definition of disability, though there are some exceptions.
But Norman Wernet, state director of the Alliance for Retired Americans in Ohio, said the restrictions are tough enough.
It’s the second time in the last two months that Social Security’s survival has thrust into the national debate. During the deficit and debt-ceiling debates, Obama said he couldn’t guarantee Social Security checks if legislative leaders could not reach an agreement.
The constant vacillating nature of politicians has Wernet and some of the more than 230,000 retirees in Ohio he represents deeply concerned.
“We understand that politicians can pull the plug,” said Wernet. “What’s wrong with this system is that rather than dealing with the practicality of the income for retirees and those on disability, we are subjecting those people to the political winds of partisan bickering.”
Comments
$1,000.00 over 52 weeks =$19.23 for the worker. Wow taxing Timmy I'll be able to afford one loaf of bread if you and the President keep telling Big Ben at the Fed and Little Tim at Treasury to print more money!
I didn't notice Timmy volunteering to reduce his staff nor has any other of the D.C. legislators. How about removing many of the agencies which have overlapping, duplicitious goals? How about removing all of those czars and their staffs? We need to stop this crazy expansion of an already massive central government, get them out of our lives and let the people rule. Tim lives by the old two party standard and that standard has failed us.
Typical Tim can only do and say what Nancy Pelosi says he can.
Author50: I'm not sure what kind of bread you eat but $20 could buy 10 loaves of Schwebel's. $20 a week is a lot of money to many working class families. And that's money that will be spent rather than put away like the wealthy do with their tax breaks. We really need to require economics courses in high schools, because most of this country doesn't understand how an economy works past Milton Friedman "I got mine" bullcrap.
Tim Ryan - does as I say not as I do.
Tim Ryan Democratic Representative (OH-17)
Voted YES on Senate pay raise.
Congressional Summary:
Makes appropriations to the Senate for FY2010 for:
expense allowances;
representation allowances for the Majority and Minority Leaders;
salaries of specified officers, employees, and committees (including the Committee on Appropriations);
agency contributions for employee benefits;
inquiries and investigations;
the Senate Caucus on International Narcotics Control;
the Offices of the Secretary and of the Sergeant at Arms and Doorkeeper of the Senate;
miscellaneous items;
the Senators' Official Personnel and Office Expense Account; and
official mail costs.
Amends the Legislative Branch Appropriation Act of 1968 to increase by $50,000 the gross compensation paid all employees in the office of a Senator. Increases by $96,000 per year the aggregate amount authorized for the offices of the Majority and Minority Whip.
Proponent's argument to vote Yes:Rep. WASSERMAN SCHULTZ (D, FL-20): We, as Members of Congress, have responsibility not just for the institution, but for the staff that work for this institution, and to preserve the facilities that help support this institution. We have endeavored to do that responsibly, and I believe we have accomplished that goal.
Opponent's argument to vote No:Rep. SCALISE (R, LA-1): It's a sad day when someone attempts to cut spending in a bill that grows government by the size of 7%, and it's not allowed to be debated on this House floor. Some of their Members actually used the term "nonsense" and "foolishness" when describing our amendments to cut spending; they call that a delaying tactic. Well, I think Americans all across this country want more of those types of delaying tactics to slow down this runaway train of massive Federal spending. Every dollar we spend from today all the way through the end of this year is borrowed money. We don't have that money. We need to control what we're spending.
Reference: Legislative Branch Appropriations Act; Bill HR2918&S1294 ; vote number 2009-H413 on Jun 19, 2009
Excerpt from The Vindicator – March 27, 2011
Article titled "In final months, Wilson gave staff $119K in perks"
“It wasn’t just outgoing members at the top of the list of staff salary increases.
At No. 2 in Ohio — and 68th overall in the House — is U.S. Rep. Tim Ryan of Niles, D-17th, who was elected last November to his sixth two-year term.
Ryan’s quarter-to-quarter increase was 38.72 percent, $94,514 more given to his staff in the last three months of 2010 compared to the July-to-September period.
Bonus payments to staffers in the fourth quarter isn’t uncommon to Ryan. He gave six-figure increases to his staff in the fourth quarters of 2009, 2008 and 2006.
“The congressman gives merit pay in the last quarter,” said Patrick Lowry, his district press secretary, whose salary increased from $16,874 in 2010’s third quarter to $21,374 in the fourth quarter. “We’ve had less turnover of staff than most offices [partly because of merit pay increases.] A number of us have been here since the beginning. Merit pay at the end of the year has been a common practice for the congressman since he’s been in office” since January 2003.
@Misterlee
Do you know what inflation is? If you don't you will be in big trouble when Taxing Timmie's party continues to print money and the dollar bubble bursts!
i find it interesting that instead of addressing what ryan has to say on the hypocracy of some wanting to raise taxes on workers, you want to attack the messenger.
while i agree the democrats have done some dumb things, the message is valid. doesn't anyone think that raising taxes on one segment, while ranting about raising taxes on another secment is hypocricitcal?
It is the same old tired arguement. The Democrats cry "they just want tax breaks for the rich" the Republicans cry "they just want to increase taxes and spend, spend, spend". Any one with common sense can see the solution and a perfect compromise. Set the rate at 6% and take off the earnings cap. Problem solved, of course lap dog Timmy has no solutions, only political speeches. Those of you out there that vote for him are part of the problem, not the solution. I recently emailed him this question. Why is it that those of us on Social Security deserve no raise for two years while some raises in the current administration have been as high as 86%? Guess what, as usual no answer or solution, only a political speech. Timmy and his staff is government waste at it's finest.
Sorry congressman can not agree. The reduction of FICA, which was intended to fund Social Security now reallotted to the general fund, is not ethical although legal. During the Lyndon Johnson administration, the federal government divested the Social Security Trust Fund to pay for general fund issues. This is exactly why Social Security needs to go back to intended funding. If those under the $106,000 ceiling need a stimulus do so in tax credits to those gainfully employeed and are legal citizens. Reallocating SS monies is why SS in is trouble and keeping this tax reduction makes the situation far worse.
I think it's important to realize at this stage that the problems with Social Security, particularly its SSDI and SSI disability programs, are now greater than just the fact that almost the entirety of the Social Security fund has been borrowed to supplement general tax revenues. As of recently, it has been determined that the money being paid in through FICA tax contributions is actually less than the total amount of benefit payments, which is the real root of the widespread media panic about the programs' insolvency.
Thanks for this article,
Doug
Social Security Disability Help
www.socialsecurity-disability.org
DisabilityGuide thanks for input and confirmation that the Social Security Trust Funds have "almost the entirety" been borrowed for general tax revenue. Whilst the collection of FICA is down due to recession employment vs increased applicant payout it is interesting to note how much more would be in the fund had this allocation for general funds not been used since the 60"s. This is not media panic as you put it but a reality that our goverment leadership needs to make changes back to basic accountability.
Hey Ryan-Pelosi, what's wrong with millionaires, billionaires, and trillionaires? It's amazing how you and your friends always slam the rich, but still pal around with them and take their contributions. No hypocrisy here, right?
The no tax increase pledge the teabagger/republicans take only applies to taxes on the ultra rich or closing loop holes and tax credits for record profit corporations. They have no problem raising taxes on the middle class.
Ryan is trying to keep SS taxes low for the average middle class worker. What is wrong with that? I would guess most people on this board falls in that catagory. Maybe a select 1 or2 make over $500,000. So Ryan is trying to keep more money in your paycheck, isn't that what teabaggers are all about.
I would say keep SS at 4.2% and increase the limit to $150,000 or $200,000. And id that amout effects any one on this board, good for you for making such a nice check. If you make under $106,000 the higher cap will not even effect you.
UnionshateAmerica/USEless1/ProMerkin/Dorothy.....You're back!
Yeah, it's only considered a tax increase when it's for the rich ! This bunch of monkeys have got to go in the next election! I do agree that the restrictions need to be tweaked a little, like the ones that can't work because of bad knees or back, high bld pressure mainly because they are 200 lbs. over weight and need a scooter to get around walmart with.
Cambridge , I thank you left out PRO
Cambridge, I know, like nobody could pick up on that statement? lol All I could think of was oh god, here we go again!
Wait until the health care bill goes into full effect in 2014. Then you'll see what happens to the payroll tax.
Anyone trying to raise taxes on citizens in this economy deserves to be strung up in the city square.
Now if we want to talk about raising taxes, let's talk about the mega corporations holding $2 trillion KNOWN offshore in money laundering havens.