Paul Ryan On Payroll Tax Cut Extension: 'Holidays Come, Holidays Go'

Rep. Paul Ryan (R-Wis.) said the one-year payroll tax cut "was never intended to be permanent" at a press conference Wednesday on budget reform.

"It's a holiday," he said, according to the Washington Post. "Holidays come, holidays go. It was never intended to be permanent tax policy."

Ryan went on to compare the payroll tax cut to the Bush-era tax cuts. "The only reason they're not [permanent] is because of the Byrd rule and the Daschle filibuster in the Senate back in those days," he said, referring to the fact that the cuts expired after 10 years and Congress extended them in 2010 to the end of 2012.

On the payroll tax cut, he added that "one can question the economic efficacy of it" but said that "the question these days more or less comes down to how to cut spending to pay for it."

Ryan said a deal will be worked out soon. "We'll figure it out," he said according to Bloomberg. "It's all good."

Ryan said last June that the payroll tax cut was a "sugar high." "We've sort of proven this already, a number of times. Temporary tax rebates don't work to create economic growth. Permanent tax changes do," he added.

"This is the same economic reasoning, policies and logic that the president used to sell his stimulus," he said on Fox News in August when asked about the payroll tax cut. "It gave us $1 trillion in debt hang over. It would simply exacerbates our debt problems in my opinion."

Last year's agreement extending the Bush-era tax cuts also cut the payroll tax cut that workers pay from 6.2 percent to 4.2 percent. President Barack Obama has proposed cutting the rate further to 3.1 percent, paid for by a surtax on people earning $1 million or more annually. The House GOP bill would keep the payroll tax cut rate at 4.2 percent and would be paid for by extending the pay freeze on federal workers and other measures.

The payroll tax cut expires Jan. 1, and unless Congress acts, the average household will pay $1,000 more a year in taxes.

Sen. John McCain (R-Ariz.) recently said that Republicans were getting "picked apart" on the issue. The payroll tax cut debate has given Democrats the opportunity to criticize the GOP on opposing middle-class tax cuts while protecting the wealthy.

Comments

[RandyK100]

08:43 PM on 12/12/2011

"Holidays come, holidays go." Same for republicants--time for this guy to GO.

[l78lancer]

12:11 AM on 12/10/2011

Two of the biggest problems the GOP has with their tax (and budget) argument are Paul Ryan and Pat Toomey. Their knowledge and credibility are nonexistent. The more they talk the more ground the GOP loses.

[l78lancer]

12:05 AM on 12/10/2011

"Temporary tax rebates don't work to create economic growth. Permanent tax changes do," he added."
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So how long does it take for the so-called permanent tax cuts to yield jobs and economic benefits? 100 years? 1000 years? The Bush tax cuts were in place for 10 years and did not produce jobs. On the contrary, job growth was negative for the entire time Bush was in office. The only thing that taxs cuts don't work for is economic growth when applied to business. When tax cuts are applied to working individuals those cuts are turned around and put right back into the economy, spurring production and spurring growth.

People are not fooled by GOP double-speak.

[l78lancer]

11:49 PM on 12/09/2011

"Ryan said last June that the payroll tax cut was a "sugar high." "We've sort of proven this already, a number of times. Temporary tax rebates don't work to create economic growth. Permanent tax changes do," he added."
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What a difference a year makes. Just last year the GOP was complely against any tax increases; thi year they are against a tax cut. It is interesting to hear how conflicted the republican party sounds about taxes. After all they are the party whose members signed pledges against tax increases. So being vehemently against extending the cuts comflicts with the very basis of their pledge and ideology.

[run wild]

10:43 PM on 12/09/2011

The more I read on the GOP I just can't believe the contempt they have for the middle and poor classes in America. I am shocked by their ignorance to the realities of the challenges we face and their ability to ignore the crimes of the 1% against our financial systems. Their position on recovery ignores the FACT that multimillionaire financiers were given billions of our taxpayer dollars with the agreement that they would invest those dollars in the financial systems they did not do this. Yet they continue to call these same people "job creators" and advise that taxing them will make them hesitate to "create jobs." We gave them billions and they did nothing with it so it has been confirmed that they are not really the "job creators" they claimed to be lets tax them at least we will get some money out of them.

[run wild]

09:39 PM on 12/09/2011

Well the criminals that raped our financial system were never supposed to be walking around free for so long they were supposed to be prosecuted to the full extent of the law for their fraud. But their "holiday" is continuing with the American Middle class taxpayer financing their crimes against the country! It is time to purchase a guillotine from France... we can no longer afford the top 1 percent...

[muffeegirl]

08:54 AM on 12/09/2011

The theory is if people have an extra $20 a week they might spend it on food or shoes or clothes and they have been, which creates demand - slightly. It is a relatively small amount but the unemployment has dropped - slightly. Jobs have been created - slightly. It is working - slightly. On the other hand have the Bush tax cuts worked? No, they have not created jobs, the 99% have created the jobs, even if only slightly.

[run wild]

09:41 PM on 12/09/2011

Let's not forget the billions of dollars that the American taxpayers lent to the white collar criminals when they raped our financial system. The deal was they were going to use that money to make loans to businesses to stimulate the economic system... they didn't do that because they were angry that people were calling for their heads, and they wanted regulation. They are forcing us to comply by threatening the taxpayers with the decimation of our financial system..

[jlm11579]

08:54 AM on 12/09/2011

What confounds me is the idea that Paul Ryan holds some sort of expertise as a leader, or, a master of economic philosophies.

His top two donors are the finance industry and healthcare. He is, in effect, been bought and paid for.

How can I take this guy seriously?

[run wild]

09:43 PM on 12/09/2011

It is not just Paul Ryan.... our Federal Reserve is comprised of Goldman Sachs alumni... we have criminals who perpetrated the biggest financial fraud America has ever known working in our Federal Reserve.... we have got to clean house and get experts with integrity in office.

[RandyK100]

08:46 PM on 12/12/2011

Exactly--f&f

[sharin]

08:43 AM on 12/09/2011

the GOP continue to refer to the rich as "the job creators". It's time we all started to call them on the carpet for that. When the rich get more tax cuts they save that money or send it to off shor accounts or invest out of country. When the middle and lower income folks get a tax cut, every dime is invested back into the economy - this is consumption, this is the true job creation.
So, yes, give tax cuts to the job creators - the 99%!

[lib4life19]

09:13 AM on 12/09/2011

They don't typically save it, the invest it. I agree much of it does get invested off shore and in tax havens. But taxing them more won't solve that problem. We need to revamp the tax code to discourage moving money off shore and encourage investment within the US. Raising taxes on the 1% won't solve that problem, it's class warfare rhetoric.

Eliminate all taxes as they currently exist, for all, companies and people. (payroll, income and cap gains).
New income tax rates for people:
$0-5000 = 1%
5001-10k = 2%
10k - 20k = 3%
20k - 30k = 4%.
100k-200k = 15%
200k-500k = 18%.
1m - 5m - 22%.
You get the point. Corporations could have a similar system. No deductions except for charity. But there is no need to have such a complex tax code, as we do now.

[run wild]

09:47 PM on 12/09/2011

The alleged "job creators" were given BILLIONS of our tax dollars to stimulate the lending industry after they perpetrated the largest financial fraud ever on the American people.... did they "job create" then.............no they took our money and did not put it back into the system instead they deposited it made interest and paid for big bonuses and expensive vacations for their higher ups the reasoning being they had "brought their companies through a difficult time and deserved the reward." We the taxpayers paid for this abuse over and over again, in return we got no jobs and no regulation of these criminals....it will happen again because no one is watching them!

[sharin]

08:37 AM on 12/09/2011

"The House GOP bill would keep the payroll tax cut rate at 4.2 percent and would be paid for by extending the pay freeze on federal workers and other measures."

and those "other measures"? - cutting 200,000 government jobs

[run wild]

09:48 PM on 12/09/2011

Yea let's cut 4 jobs at $50,000.00 to keep one overpaid useless executive on the payroll.... that makes good financial sense don't it?

[VOTER]

08:34 AM on 12/09/2011

Image of Greedy One Percenter, Paul Ryan - minus his $$$$$ French Wine

http://www.flickr.com/photos/donkeyhotey/5634805518/

[nappyman]

08:23 AM on 12/09/2011

Good point Mr Ryan. But neither were the Bush tax cuts meant to be permanent. Doesn't stop you from trying.

[run wild]

09:50 PM on 12/09/2011

Our financial system was not setup so a handful of people could rape it and pillage it and bring it to it's knees to serve their own greedy agenda....... BUT THEY DID IT DIDN'T THEY!!!!! Keep the payroll take and fine the grifters that cause the financial meltdown....that will more than pay for the payroll tax....

[gravescanada]

08:21 AM on 12/09/2011

Kill the tax cuts for the wealthy. Give tax cuts to small business's and NOT big Corporations. Pass legislation that requires all banks to cut interest rates on ALL residential mortgages to 3%.

[run wild]

09:52 PM on 12/09/2011

Agreed, and regulate, regulate, regulate the corporations and financial institutions...get Goldman Sachs out of the Federal Reserve...all of these changes will help! Oh and prosecute the criminals that perpetrated the financial fraud on the American people!

[ronp121]

08:08 AM on 12/09/2011

Logic dictates that the tax cut for the non job creators is non essential. Putting money in the tax payers pocket will not create a job but only help to feed a family or pay a bill which puts money back into the system. Totally unacceptable to republicans. Best to take that money and give it to the rich in tax breaks for them. For they are the job creators. Oh I got to stop LMAO.

[run wild]

09:53 PM on 12/09/2011

It would be funny ..... if it wasn't so very, very, sad.....

[Kate Zeiss]

07:55 AM on 12/09/2011

When did you change your mind, Mr Ryan?

http://www.nytimes.com/2011/04/08/opinion/08krugman.html