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2%, 1 year reduction in FICA taxes

DCblogger's picture

Warren Mosler

With the 2%, 1 year reduction in FICA taxes for individuals, arguably traceable to my efforts, there was some consideration of declaring victory and moving on, but I’m feeling more the opposite.

First, it’s tiny and at the macro level the propensity to spend of the recipients is trivial.

And it probably doesn’t even offset the drag from prices for imported crude and products.

And it may just be an interim step in letting the next Congress ‘pay for it’ with Social Security cuts.

The large increase in ’spending cutters’ are about to take their seats in Washington, with many pledged to kick things off with a $250 billion spending cut, and then balance the Federal budget, along with what could be a majority ready to pass the doomsday bill for a balanced budget amendment to the US constitution.

And a President who seems to think that’s all a good idea as well.

Reading this item that Susie linked to, I get the feeling that no one in Versailles thinks that their jobs depend upon our having a job.

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beowulf's picture
Submitted by beowulf on

Thanks for posting Warrens' comments, reminded me that I saw a link to Kucinich's newly released full reserve banking bill there this morning. All I'll say is, oh boy! I admire the effort but this is like shooting past Medicare for All and going straight for let's order every doctor and nurse to become a govt employee. A pity Kucinich didn't draft his bill more along the lines of Warren's ideas.