Republicans Don’t Mind a Payroll Tax Increase

John Kyl doesn’t mind some types of tax increases:

Saturday’s Jon Kyl vs. Sunday’s Jon Kyl, by Steve Benen: On Saturday, Senate Minority Whip Jon Kyl (R-Ariz.), along with his five other GOP colleagues from the super-committee, wrote a Washington Post op-ed on the debt-reduction process. Kyl’s point wasn’t subtle: he and other Republicans just can’t accept tax increases, at least for the foreseeable future.

Kyl called tax increases “the wrong medicine for our ailing economy,” and said the mere possibility of tax increases has “put a wet blanket over job creation and economic recovery.”

That was Saturday. Just 24 hours later, Kyl told a national television audience he’s comfortable with a payroll tax increase on all American workers on 2012. ……

Senate Democrats are moving forward with its plan to extend the payroll tax cut, with a vote perhaps coming as early as this week. Republicans will filibuster the proposal, though Sen. Pat Toomey (R-Pa.) told ABC yesterday that “probably some package” that includes a payroll extension “might very well pass.”

The reason for the objection, as Steve Benen points out, is that the payroll tax cut would be paid for by increasing taxes on the very wealthy. Can’t have that. But unlike their reaction to other types of proposed tax increases, Republicans are not insisting that spending be cut to protect workers from a tax increase. Wonder why?

About Mark Thoma 243 Articles

Affiliation: University of Oregon

Mark Thoma is a member of the Economics Department at the University of Oregon. He joined the UO faculty in 1987 and served as head of the Economics Department for five years. His research examines the effects that changes in monetary policy have on inflation, output, unemployment, interest rates and other macroeconomic variables with a focus on asymmetries in the response of these variables to policy changes, and on changes in the relationship between policy and the economy over time. He has also conducted research in other areas such as the relationship between the political party in power, and macroeconomic outcomes and using macroeconomic tools to predict transportation flows. He received his doctorate from Washington State University.

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