Is the payroll extension an attempt at planting a Trojan Horse?

Why do I get the feeling that today’s passage of the extension of the payroll tax reduction is a Republican Trojan horse? Why agree to legislation that further expands the deficit? Either reality trumps rhetoric or the GOP hopes that an expanded deficit along with a slowing economy will turn this Trojan horse into a mid-summer’s nightmare.

A number of analysts expect economic growth to cool through the rest of the year, probably no higher than an annual growth rate in GDP of 2%. This deal tacks on another $100 billion or so in deficits which could crowd out lending in the private sector.

Short term bail out for the unemployed now paid for by a slowing economy later. I hope not.

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
This entry was posted in Congress, Economy, Political Economy, taxes, unemployment and tagged , , , . Bookmark the permalink.

One Response to Is the payroll extension an attempt at planting a Trojan Horse?

  1. Ken Ciszewski says:

    I think the GOP faced an ugly political reality. If they didn’t agree to the payroll tax reduction extension, they would have validated the claim that they only want tax breaks for the super rich and the very rich–the common man doesn’t count. Obama would have used it against them like a sledge hammer in the coming election campaign, along with always being the party of “NO”!

    The GOP took extreme and rigid positions on raising taxes and reducing the deficit which were coming back to bite, since neither was popular. Now that they have softened, they will look like flip floppers, which will make the Tea Party unhappy, but I suspect the days of the Tea Party are numbered, because they also took the same rigid positions, which are unworkable politically. I also think the Tea Party didn’t think about this, it just reacted in knee-jerk fashion to the GOP propaganda on the subject.

    As for the $100 billion, I don’t think it will do much harm. To the GOP, it’s a small price to pay for not being demolished in the coming election. The GOP will have to eat some crow, perhaps, but they will find a way to dance around these issues.

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