The reduction in the payroll taxes did not come until the end of 2010. The tax cuts that were part of the stimulus were just that - a cut in income taxes for the middle class.
As far as the cut in payroll taxes - the government has been considering those funds fungible for years. They are also about a regressive a tax as you can get. Not only are they a flat tax rate, but it is a tax that is no longer collected when folks reach higher income levels. I have no problem with lower income people being the beneficiaries of a tax break during a recession. After all, the lower income people tend to spend a much larger portion of their income, so any tax relief directed to them goes straight into the economy.
Regards,
D-Ray
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Then I'll get on my knees and pray,
We won't get fooled again; Don't get fooled again
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