Friday, December 23, 2011
THIS JUST IN – WHAT FOOLS THESE CONGRESSPERSONS BE!
The idiots in Congress have finally acted on extending the payroll tax reduction so they would not have to sacrifice any of their (certainly undeserved) holiday leave. There were back-to-back voice vote approvals of the measure by the Senate and House this morning. President Barack Obama is expected to sign the new bill today before he heads to Hawaii to join his family for what's left of the holidays.
I can’t describe this action any better than my fellow tax blogger TAX GIRL Kelly Phillips Erb - “When Dumb Meets Stupid: Payroll Tax Cut ‘Compromise’”.
“So months and months of debate on the payroll tax cut has resulted in this: a two month extension.”
“But it’s paid for!” is the excuse of the idiots in Congress. Kelly correctly points out –
“You know what’s not paid for? The agita that employers, tax pros and the IRS will face trying to sort out a bifurcated tax year.”
While I selfishly liked having to pay less Social Security tax on my wages, I tend to agree with Kelly when she described the measure –
“It was clearly a vote-getting scheme to replace the confusing Making Work Pay Credit.”
And I agree with Kelly’s when she suggests that preparing the 1st Quarter 2012 Form 941 will result in unnecessary agita for both accountants and the IRS –
“Those forms 941 will be a joy, huh?”
It is relatively easy for employers to extend the payroll tax reduction for a 2 month period. They can identify what wages were paid during the first 2 months of the year. But what of the self-employed taxpayer filing a Schedule C? Does he now have to prepare 2 Schedule Cs – one for January and February and one for the rest of the year? Of will the reduction just be pro-rated on 1/6th of net earnings from self-employment?
I suppose that Congress will vote during the last week of February 2012 to extend the cut for another 2 months.
This action proves once again that the idiots in Congress cannot accomplish anything – even if both parties support an item (such as the extension of the payroll tax reduction in this case). It also shows the idiocy of “temporary” tax cuts.
What fools these Congresspersons be!