Republicans will say absolutely anything – even if it is flat out wrong – to protect those making over a million dollars a year from paying one red cent and force the average American family to face a $1,000 tax increase next year.
Senate Republican Leader Mitch McConnell: “In fact, I think it’s safe to say that any attempt to pass another temporary Stimulus funded by a permanent tax hike…is purely political, and not intended to do a thing to help the economy…” [Floor Speech, 11/28]
Senate Republican Whip Jon Kyl: “The payroll tax holiday has not stimulated job creation. We don’t think that’s a good way to do it.” [Fox News Sunday, 11/27]
But Republican rhetoric simply doesn’t match reality. Don’t take our word for it…
Barclays analyst Michael Pond: “One of the things that we’re watching is the payroll tax extension and the signals that we’re getting from Washington as to whether we get that extension. Because if we don’t, our growth forecast frankly will probably be dropped down from about 2.5 percent in Q1 down to around 1 percent. It’s that big.” [Bloomberg Television, 11/29]
“According to Macroeconomic Advisers, allowing the payroll tax cut to lapse ‘would reduce GDP growth by 0.5 percent and cost the economy 400,000 jobs.’” [ThinkProgress, 11/22]
“JPMorgan Chase economists estimated losing unemployment benefits and the payroll tax cuts would shave 0.75 percentage point from growth in gross domestic product next year.” [Reuters, 11/22]