We spoke yesterday about how Senate Democrats will be voting today on a massive new tax hike on job creators merely to extend existing tax relief for workers. Thankfully, senators have a great alternative to this destructive, jobs-killing plan.
The Senate GOP released their own package today. It extends the payroll tax break for one more year, cuts spending, cuts the national debt, and doesn't raise taxes on anyone. Specifically, it:
- freezes the salaries of 2.8 million federal bureaucrats for three years
- begins a process of federal hiring attrition to reduce the federal workforce by 10 percent
- means tests government welfare benefits for those making more than $1 million, including for government health insurance, food stamps, and unemployment compensation
- implements Senator John Thune's (R-S.D.) "Buffett line" bill, which allows anyone who thinks their taxes are too low to voluntarily pay extra on their 1040s
It makes a lot more sense to cut off welfare for high earners who don't need it than to raise taxes on 34 percent of all the profits earned by small business employers every year.
It makes a lot more sense to make federal bureaucrats feel the pain than it does for small employers on Main Street to feel the pain.
This is a no-brainer. The plan not only doesn't add to the deficit, it reduces it through spending cuts only. It puts in place long-overdue reforms to the federal workforce, and it doesn't raise taxes on anyone.
What do you think? Which version of the payroll tax bill would you rather see Congress pass?