My Payroll Tax Rant of the Day

5 December 2011, 1907 EST

The payroll tax fight in a nutshell.

Republicans: Unlike every other tax cut we’ve dealt with in this congressional session, the payroll tax holiday must be offset. We demand spending cuts.

Democrats: Fine, we’ll offset it with a temporary increase in taxes for the .01% of the population that makes more than a million dollars a year.

Republicans: No. We demand spending cuts.

Democrats: Wait. Are you saying that given the choice between two policies that lead to the same exact levels of aggregate taxation, you’d choose one that raises taxes on 99.99% of taxpaying Americans?

Republicans: Yes. We demand spending cuts.

Democrats: But why not offset a temporary stimulus measure with one less likely to reduce aggregate demand?

Republicans: ….

Democrats: Oh. ….That’s not what you mean by “offset,” is it?

Republicans: Took you long enough. We demand any economic benefit of the payroll tax holiday be offset.

I can’t believe that we’re even having this debate.

Dan Nexon

Daniel H. Nexon is a Professor at Georgetown University, with a joint appointment in the Department of Government and the School of Foreign Service. His academic work focuses on international-relations theory, power politics, empires and hegemony, and international order. He has also written on the relationship between popular culture and world politics.

He has held fellowships at Stanford University's Center for International Security and Cooperation and at the Ohio State University's Mershon Center for International Studies. During 2009-2010 he worked in the U.S. Department of Defense as a Council on Foreign Relations International Affairs Fellow. He was the lead editor of International Studies Quarterly from 2014-2018.

He is the author of The Struggle for Power in Early Modern Europe: Religious Conflict, Dynastic Empires, and International Change (Princeton University Press, 2009), which won the International Security Studies Section (ISSS) Best Book Award for 2010, and co-author of Exit from Hegemony: The Unraveling of the American Global Order (Oxford University Press, 2020). His articles have appeared in a lot of places. He is the founder of the The Duck of Minerva, and also blogs at Lawyers, Guns and Money.