Comment Well, this one is. (Score 5, Insightful) 294
I hate to say it, because it's horribly unpopular from a political perspective, but this payroll tax "holiday" is just disastrous policy. Depending on what numbers and what year you're looking at, anywhere from 81 to 89 percent of the entire U.S. budget goes to two things: defense and entitlements. And of those entitlements, the biggest long-term liabilities and problems that we have are Social Security and Medicare.
When you hear these Presidential candidates talk about how they would fix the budget deficits by getting rid of things like the EPA, the IRS, the Departments of Commerce / Energy / Education, etc., then you know should know that they are not making any sort of good-faith effort at solving the problem, and that they cannot be taken seriously. The dirty little secret is that you could cut out 100% of the discretionary non-defense spending (i.e., everything except for the military and entitlements) and you would have barely made a dent in the problem as a whole.
The whole purpose of the payroll/FICA tax is to provide funds for Social Security and Medicate. Again, these are the two biggest problems that the U.S. has from a budget perspective -- biggest by leaps and bounds. So not only does this policy make the deficit problem worse, it makes it worse in the worst possible way. Politicians can claim that these tax cuts are "paid for", but everybody knows that these types of Washington claims are usually just shell games for political purposes.
For what it's worth, I like the fact that the payroll tax holiday disproportionally benefits those towards the lower end of the income scale. But there has to be a better way to do this, especially at this critical time in history when the Boomers are retiring and we're going to need these trust funds more than at any time in our history.