President Obama says high gas prices justify payroll tax cut extension

By Catholic Online (NEWS CONSORTIUM)
2/16/2012
Catholic Online (www.catholic.org)

'Congress needs to extend that tax cut, along with vital insurance lifelines for folks who've lost their jobs during this recession,' president says

In order to extend the payroll tax cut and unemployment insurance through the end of the year, President Barack Obama cited rising gas prices as one of the chief reasons. The White House says that the average U.S. citizen would be affected by $40 per paycheck if the tax cut is not extended at the end of February.

When President Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79.

Facebook Delicous MySpace

Twitter Stumble Digg

More Destinations

LOS ANGELES, CA (Catholic Online) - The payroll tax funds Social Security and cutting the tax would reduce funding to Social Security by $119 billion over the next year. This would be on top of the $105 billion reduced from funding in 2011.

Republican lawmakers have announced plans to vote for a full-year extension to the tax cut. In opposition, Obama told his audience at the Eisenhower Executive Office Building in Washington that they must put pressure on Congress.

"Congress needs to extend that tax cut - along with vital insurance lifelines for folks who've lost their jobs during this recession - and they need to do it now, without drama and without delay," Obama said.

"No ideological sideshows to gum up the works. No self-inflicted wounds. Just pass this middle-class tax cut. Pass the extension of unemployment insurance. Do it before it's too late, and I will sign it right away."

House Republicans have tried to extend the payroll tax cut for a full year in December. They also agreed to a Senate Democratic proposal to extend it just for the first two months of 2012.

Obama delivered a budget address at the beginning of this week in which he referred to the Bush tax cuts as $1 trillion in spending. The following day, Obama stressed that the economy is improving and that this is not a time to reduce the amount of spending money.

"Allowing this tax cut to expire would make people's lives harder right now," Obama said. "It would make their choices more difficult. It would be $40 less for groceries to feed your kids; it would be $40 less for the medications you depend on; $40 less to cover bills and the rent; $40 less to take care of an elder parent, or to donate to a church or a charity.

"And when gas prices are on the rise again - because as the economy strengthens, global demand for oil increases - and if we start seeing significant increases in gas prices, losing that $40 could not come at a worse time," Obama said. "One local entrepreneur named Thierry - where's Thierry? He's right here.

"He told us that $40 would cover the gas that gets him to his day job, or, alternatively, the Internet service his small business depends on. So he'd have to start making a choice - do I fill up my gas tank to get to my work, or do I give up my entrepreneurial dream. 'Forty dollars,' he wrote, 'means a heck of a lot,'" the president added.

When President Obama entered the White House in January 2009, the city average price for one gallon of regular unleaded gasoline was $1.79. Five months later in June, unleaded gasoline was $2.26 per gallon, an increase of 26 percent. By December 2011, the price of regular unleaded gas per gallon was $3.28, an 83 percent increase from January 2009.

� 2012, Catholic Online. Distributed by NEWS CONSORTIUM.

- - -

Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.

Keywords: Gas prices, payroll tax cut extension, President Obama

NEWSLETTERS »

Rate This Article

Was this helpful to you? Very Helpful Somewhat Helpful Not Helpful at All

Would you be interested in more articles like this? Yes, I am Interested No, I am not Interested

Rate Article

1 - 6 of 6 Comments

Rob
1 year ago
vance, these cuts are like anything else our government does. We'll cut our throats because today, this moment, we don't have to bear the brunt of it. The only thing that we can count on from DC is them protecting their rears. Since most of them won't be around when it all comes apart or they can convince people that it's not their fault and we keep buying it. They just keep pitting us against eachother and they ride the partisan gravy train to the bank every year. Would be a different ball game if the guys who passed all the financial deregulation found themselves wiped out or the guys that think we can provide healthcare for every citizen for free found themselves with no healthcare because the system went belly up. But these kings and queens we have in DC have never felt any of the pain we do. None of them will do the things that need to be done in this country so long as they are at the beck and call of the people who fund their campaigns. That is who the real fight is between. You and I? They could care less.
David Carlon
1 year ago
This is simply the neoliberal democratic party's velvet jacket boot way of destroying social security... by cutting off the principal source of funding. The obama administration and wall street banking and brokerage industries continue playing 3 card Monty with our national patrimony and continue to pillage and plunder the poor, ill, widowed, elderly, and the middle class under the cloak of false charity.
Rob
1 year ago
Tax cut is just a gimmick. Way to put yourselves out there for the middle class.
vance
1 year ago
High Gas Prices Justify the Payroll Tax Cut. Don't forget that the Payroll Tax FUNDS SOCIAL SECURITY and MEDICARE. The Marxist Democrat Party and their Marxist Media Complex are pulling off another CON GAME by telling the American people that this tax cut is going to make their pay checks larger. The Liars are not telling the American people that this so-called cut will undermine the already broke Social Security and Medicare Fund. The only reason they get away with the LIE is that they have a monopoly on the News Media and the Media is not telling the American people the truth. If these LIARS wanted to give the American people a Tax Cut, they would CUT THE INCOME TAX RATES.
Needs Vacation
1 year ago
This is a crisis.

If we don't discuss the important facts then we are doing ourselves a disservice.

It's not about unemployment applications, it's about new job production. The unemployment application numbers have to drop since hiring has been frozen for the past 4 years. Companies can't operate with any less employees.

If high school graduates double the number of newly created jobs every year, then where are we.

This is a recession, or with the facts will soon turn into one.
Daniel
1 year ago
It is time to define Catholic and "Catholic". We can no longer accept "Catholic", but must once again become Catholic. Being Catholic begins with our faith and continues to the elections and voting for a candidate with morals/standards consistent with being Catholic-Christian.

Comments submitted must be civil, remain on-topic and not violate any laws including copyright. We reserve the right to delete any comments which are abusive, inappropriate or not constructive to the discussion.

Though we invite robust discussion, we reserve the right to not publish any comment which denigrates the human person, undermines marriage and the family, or advocates for positions which openly oppose the teaching of the Catholic Church.

This is a supervised forum and the Editors of Catholic Online retain the right to direct it.

We also reserve the right to block any commenter for repeated violations. Your email address is required to post, but it will not be published on the site.

We ask that you NOT post your comment more than once. Catholic Online is growing and our ability to review all comments sometimes results in a delay in their publication.

Name *

Email *

Comment *

Send me important information from Catholic Online and it's partners. See Sample

Post Comment

More Business & Economics News

Featured News

Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.