In the original Star Wars trilogy, Luke Skywalker is pressed into action as the last of the Jedi, tasked with defeating the Sith and lifting the veil of the dark side off the old Galactic Republic. In order to accomplish this, Luke must be trained to resist the temptations of the dark side. In order to destroy the Sith, Luke would have to tap into the emotions that lead to the dark side. Wow, did Joseph Heller get a writing credit for this script? Luke comes to learn that if he is to destroy the dark side, he will have to invent an option C. Option C was to appeal to Darth Vader’s light side, so that he could destroy the Emperor in a final act of self-sacrifice.
Meanwhile, in a galaxy not as far, far away, John Boehner was presented with an option C and committed his own act of self-sacrifice. The argument seemed simple enough. On one side, keep the employee payroll tax rate the same in 2012 as it was in 2011. On the other hand, lower paychecks by forty dollars a month. At least that’s the dark side’s way of framing the issue.
Remember in September when the payroll tax debate was part of a jobs plan, and not some political tool to be used as part of some populist (your crude verb here) contest? Perhaps this bait and switch was the intention all along. The White House certainly grinned when Eric Cantor declared that there were elements of the American Jobs Act that could be adopted.
Few places outside of this slice of bandwidth have discussed the concepts of the employer portion of the payroll tax, or adjusting the benefits funded by the payroll tax as critical components of the discussion. Instead, Washington is focused on seizing the opportunity to impact 160 million paychecks. Media outlets are doing their best to advance this narrative.
Adjusting the employee portion of the payroll tax does nothing to address the jobs issue. The tax is withheld from an already agreed upon salary. Now don’t mistake me for some kind of ingrate. I benefit from the current rate, and I’m not giving the money back. The extra funds are just about equal to a broadband connection (much to some readers’ chagrin, I’m sure). Multiply this effect by 160 million, and you have an economic benefit. But if the goal is to increase the frequency of payrolls, adjusting the magnitude of my check is not a means to that end.
With the clock ticking on the 2011 Congressional session, Speaker Boehner made a push to make this debate about jobs. He tied the tax rate vote to approval of the Keystone pipeline. While not the alpha and the omega to the jobs problem, the pipeline would address jobs and energy independence. The Speaker should have known that the pipeline was a non-starter. By attaching a rider to the issue, he allowed the Democratic party to position themselves as the party of tax cutters.
At the tenth hour there appeared to be two options. The first would be to extend the current rate with no other conditions. This would be viewed as a win for the White House. Alternatively, let the rates revert to 2010 rates. This would be a loss for all, but easily spun as “the Tea Party did it.”
At the eleventh hour, Speaker Boehner embraced option C. Option C was a two-month extension of the 2011 rate with a rider that compels the President to make a decision on the Keystone pipeline. This is pretty much where the Star Wars analogy ends. Option C just strengthens the dark side. I suppose if Obama is defeated in 2012, it could be said that the Speaker committed an act of self-sacrifice, because having a “go along to get along” Speaker would no longer be necessary.
What if the private sector ran like this? Could anyone imagine Subway’s CFO saying that Footlongs will be $7 if the CEO doesn’t make a statement on whether or not they will start selling pizzas? If so, the CEO would spend months meeting with food distributors hawking their cheeses and sauces. Then if the answer is no, would the CFO add another two months to the current price if the CEO explored cheeseburgers?
Wait a second. You don’t think the payroll tax issue could have been used by the fine folks in DC, do you? Would it be overly cynical to suggest that environmentalists will occupy the left side of K Street, while the energy sector occupies the right side? And in an election year to boot! You have to wonder if Pelosi, Reid, McConnell, and Obama take the rear car on the Red Line’s midnight train, just cooking up this stuff. If demanding that the government sets its tax policy on a yearly basis (at the least) is Tea Partyish, then I’ll order a shipload. Maybe it doesn’t need a label. Maybe it’s just common sense.
Troup’s Corner Non-Sequitur – The Kent Center: Due to my temporary condition, participating in the 2011 Goosebump Jump would have been a b-a-a-a-d idea. Because I was unable to participate in this worthy endeavor, I thought I would dedicate a few column inches to tell people about the valuable work this outfit does. Through various fundraising efforts, banquet hall rentals, and its store, the Kent Center provides employment opportunities and an improved quality of life for the developmentally disabled. With just a few days left in the year for those tax deductions, if you have a few spare dollars or items to donate, think of the Kent Center. If you have some piece-rate labor that your small business doesn’t have enough time to finish, think of the Kent Center. Or you could do it “just because.”
Warrior Bob Kramer says
Monsieur Troup’er…
You said it before and I’ll say it again… “This is nuts!” It’s that simple. How else can you describe a country with a trillion dollar budget running on a month to month basis. We’re barely afloat in the good ship Blind Squirrel… searching for acorns… with a captain who can’t navigate… and an uncooperative mutinous crew. And this will be the comical theme until we hopefully resolve how we are to be governed when we vote in Nov ’12.
Steve Payne says
There were many more riders on the original proposal than Keystone. GOP wanted reduction on unemployment, drug testing, fed pay freeze, etc,etc.
I don’t think Obama set them up and when they set themselves up he didn’t get in the way. He’s not stupid.
Steve Payne says
Here’s the House Bill that was originally proposed to the Senate:
https://www.gpo.gov/fdsys/pkg/BILLS-112hr3630eh/pdf/BILLS-112hr3630eh.pdf
Michael Troup says
WBK – The mutinous crew is easy to blame, and they often do themselves no favors. But if the captain has the iceberg warning six hours in advance, and the response is “forward and fast,” maybe its time to find people who aren’t more concerned with the placement of the deck chairs.
Michael Troup says
Steve – As you may know from last week, I hate riders. Plenty of blame to go around.
My preference would be to use the payroll tax debate to ensure that programs funded by said tax are solvent without placing a barrier to employment. Which I’m sure brings you back to SB, but sometimes we have to discuss things as they are, not how they should be. I’m as guilty as anyone.
Stephan Sonn says
I notice that Sen Lugar spoke out against the Tea Party primary challenge to him. Like John McCain he is not cowed but rides his record of sane vision.
Is the anything goes sandstorm strategy ending or is this just the eye of the storm?
Steve Payne says
Michael
I guess I’m starting to sound like a broken record on Simpson Bowles. Maybe after the election there can be some progress but I doubt it. The mutiny will be fun to watch if it happens.
To donate to The kent center see:
https://www.kentcenter.org/donate/
or
https://www.justgive.org/giving/donate.jsp?ein=52-0906488 to donate online.
To donate to Kent Food Bank:
https://kentfoodpantry.org/get-involved/
Michael Troup says
We all have our hobbyhorses. Enough to make the Preakness relevant again!