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GOP Will Lose Big In 2012 If They Fight Payroll Tax Extension

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It was suggested by the number 2 man in the Senate for the GOP that Republicans may not support extending the payroll tax cut this year.
If this happens, it will cause the GOP to lose big time in 2012.
Senator Jon Kyl made the suggestion while on Fox News Sunday this weekend.
His stance seemed to confuse host Chris Wallace because not only did Kyl say Republicans may not support the payroll tax extension, but Kyl said that if Republicans did support it, they would demand that it was paid for.
This is a complete 180 from previous statements and demands about tax cuts from Republicans, which Chris Wallace pointed out.
Kyl's response when asked why Republicans were demanding this cut be paid for but not the Bush tax cuts was, "The problem here is that the payroll tax doesn't go into general revenue, it supports Social Security.
And you can't keep extending the payroll tax holiday and have a secure Social Security.
That's the first problem.
" The second problem according to Kyl, is that Democrats are insisting on paying for the payroll tax extension by raising taxes on the wealthy.
The Sunday news shows also featured Grover Norquist on Meet the Press.
Norquist's group, Americans for Tax Reform, which has been causing havoc in Congress over any talk on raising revenues, has been crusading against any talk of raising taxes.
Norquist though has said that not extending the payroll tax cut would not be considered a tax increase in his mind.
When asked why he said,"Well, two things, I'm not opposed to extending the payroll tax particularly.
I think it's destructive to, to extend it and raise some other tax the same dollar amount, matter of fact, in a more destructive economic policy.
But the other piece to this is the reason why people view the one-year tax holiday that Obama put in a year ago, as a temporary tax increase was that President Obama said it was going to be temporary when he put it in.
When the Republicans in the House and Senate passed the '01 and '03 tax cuts, those were, as, as their advocates said, intended to be permanent.
They weren't for reasons of, of Democratic filibusters, but they were always intended to be permanent tax reductions.
Obama was the guy who said that this was a tax holiday.
Calling it a tax holiday kind of suggests they viewed it as temporary.
Holidays aren't permanent.
" The problem with both Jon Kyl's and Grover Norquist's answer on the issue of the payroll tax cut extension is that it is convoluted.
The public doesn't like convoluted answers.
They like things to be simple.
That is where the Republican stance on this specific tax cut will get them in trouble.
The fact is that this is a tax cut that President Barack Obama came up with and supports.
Republicans now look like hypocrites coming out against the payroll tax cut when they support every other tax cut on the book, many of which only benefit the extremely well to do.
They look like hypocrites because they claim to hold any and all tax cuts as sacred, yet oppose one that President Obama came up with and holds dear.
The payroll tax cut, which puts $1000-$1500 a year into the pockets of the average middle class family of four, was designed to support the middle class the most.
Opposing this cut, while simultaneously supporting the Bush tax cuts, which provides a much greater windfall for the wealthy, sets the argument against Republicans in 2012 well.
Republicans are for tax cuts, but only their cuts that mainly go to the wealthy.
I am not saying the argument is true.
It is the perception that matters.
Republicans need to come out in support of the payroll tax extension if they want to avoid this.
They have already been hurt by the suggestion that they would not support the payroll tax extension.
It is not too late for them to do damage control and come out fully supporting it.
If Republicans do not come out in support of the payroll tax cut extension or even worse, oppose it, it will hurt them greatly in 2012.
It does not matter if their argument is factually correct on the matter.
What matters is what people perceive.
Opposing the payroll tax cut extension, but mandating the Bush tax cuts be extended will be perceived as Republicans supporting the rich over the middle class and hypocrites on the issue of taxes.
It will be perceived as Republicans refusing to go along with any idea from the President, even if it is something they would support if it came from a Republican.
President Obama will use this fact in his reelection campaign and it will go a long way to sway the public to vote him in for a second term.
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