I have to give it to the Senate Republicans. As a whole, they are clearly much smarter and much more savvy than the Democrats when it comes to quickly assessing the economic impact on US citizens of their legislation.
The way the massive amount of executive compensation bonuses work is that the overwhelming majority of them are paid in the first two months of the year. Thus the overwhelming portion of the US Big Corp bonuses will get the 2% payroll tax holiday.
And thus many Wall Steet employees and also many Big Corp executives in all industries will get the entire annual 2% payroll tax holiday on the more than $100,000 of their compensation which is paid in the first 2 months of the year. Yeah, that's more than $2,000 of payroll tax relief in only the first two months of the year.
Not so for the 99%, who are fortunate to even be working, and whose compensation is earned equally over the year.
Thus, someone making $60,000 per year makes $10,000 in the first two months of the year, and thus gets only $200 of payroll tax relief in the first two months of the year, less than 10% of the payroll tax benefit of many Wall Street employees and most Big Corp executives.
And someone clearly underemployed, working several part-time jobs, and making $18,000 per year gets a meager $60 of payroll tax relief in the first two months of 2012, which is less than 3% of the more than $2,000 of payroll tax relief that many Wall Street employees and nearly all Big Corp executives will receive.
That's clearly not fair. This US Senate legislated Temporary 2 Month 2% Payroll Tax Holiday is not as it is widely touted by the US Congress as a Middle-Class Tax Break, but instead another tax break that clearly favors the 1%.
And even ignoring the bonuses paid in the first 2 months of the year, someone making a very high annual compensation will get an outsized benefit from the 2% First 2 Month payroll tax holiday as compared with modestly paid employees.
And Docs, the majority of whom are 1%ers, get a double benefit with this Senate legislation. Not only do they get the Doc Fix on Medicare fees, but also most of them receive outsized benefits in the first two months of the year from the 2% Payroll Tax Holiday on their very lucrative pay earned in the first two months of 2012.
No wonder Republican Senators McConnell from Kentucky and Physician Barrasso from Wyoming were so brazenly and arrogantly high five-ing each other after the 2 Month Payroll Tax Holiday passed the US Senate. These two US Senate Republican Leaders were openly displaying their elation from orchestrating another outcome where the 1% trounce on the 99%. There is a reason that the US Congress has by far the lowest approval rating since these ratings have started.
And the Democrats in the US Congress wonder why the Occupy Movement is focusing on all of the US Congress, not just on the Republicans?
The legislation in the US Congress consistently favors the awesomely powerful, smart, and clearly deceptive 1% over the 99%.
