“Feel Good” Legislation

Let's talk about the payroll tax cut. First, let's say the tax cut had not been extended. What would have been the result? People would have had less money to spend but more money would have gone to shoring up the Social Security Fund. So, essentially we'd be saving for our future rather than spending today.

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We now know the tax cut was extended for a year. Economists say that most of the savings for the average person will be spent to offset rising gas prices. In a nut shell, most of the money not going into the Social Security fund will go to the Middle East oil producing countries. AND, to make a bad situation worse, 43% of the money needed by the Social Security fund will then be borrowed, increasing the deficit by ONE HUNDRED BILLION. Extension of the payroll tax cut is another example of "feel good" legislation that buys votes but not prosperity. As Americans, we face a serious economic crisis that is only being made worse by failure to understand and accept the real consequences of this and other decisions. Jean Arcamone

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