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Senate Passes Payroll Tax Extension, Gas Price Increase Has Already Offset Benefits

Tyler Durden's picture


In a 60-36 vote, Senate just passed the payroll tax extension, previously voted through by Congress. From Reuters: "The U.S. Senate on Friday passed legislation extending a tax cut for 160 million workers and long-term jobless benefits through December, clearing the way for President Barack Obama to sign the measure into law. The Senate approval by a simple majority vote followed the House of Representatives' approval earlier on Friday. The legislation, which also extends current payment rates to doctors through the Medicare health care program for older Americans, will add $100 billion to the U.S. deficit and is aimed at further stimulating the economy." As a reminder, all this means is that a repeat of the debt ceiling fiasco is now virtually assured before the presidential election as discussed here, which explains the GOP's willingness to pass this through as fast as possible with no offsetting spending cuts. As for the benefits of $1000/taxpaying household, the recent rise in gasoline prices has already offset those. One can only hope that crude prices are as susceptible to successful central planning intervention as all other assets, or else many more extensions will be needed before the year is over.

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Fri, 02/17/2012 - 13:33 | 2170256 SilverRhino
SilverRhino's picture

Paper bitchez!

Fri, 02/17/2012 - 13:42 | 2170311 LaLiLuLeLo
LaLiLuLeLo's picture

Bicycles bitchez!

Fri, 02/17/2012 - 14:09 | 2170488 redpill
redpill's picture

They should "pay" for it by increasing gas taxes so the circle of sad irony is complete.

Fri, 02/17/2012 - 14:18 | 2170565 LFMayor
LFMayor's picture

AK's bitches.   can be had for 450.00 still.  Stock your ass up.

Sun, 02/19/2012 - 07:03 | 2174541 Kobe Beef
Kobe Beef's picture

HE's for the win.

Wed, 02/22/2012 - 03:16 | 2183710 Mauibrad
Mauibrad's picture

NY EBT cards used everywhere? report:  video:  

Fri, 02/17/2012 - 13:58 | 2170412 HedgeAccordingly
HedgeAccordingly's picture

CRude about to take out the 104 .. on way to 110 - http://hedge.ly/x1bJc4

Fri, 02/17/2012 - 13:34 | 2170264 taniquetil
taniquetil's picture

"We cannot and will not sustain deficits like these without end. Today I'm pledging to cut the deficit we inherited by half by the end of my first term in office."


-Barack Obama, Feb. 2009

Fri, 02/17/2012 - 13:42 | 2170310 VanillAnalyst
VanillAnalyst's picture

"Socialists cry “Power to the people”, and raise the clenched fist as they say it. We all know what they really mean—power over people, power to the State."

-Margaret Thatcher

Fri, 02/17/2012 - 13:45 | 2170326 LaLiLuLeLo
LaLiLuLeLo's picture

but but but...  Jon Corzine told me stealing was EZ

Fri, 02/17/2012 - 13:52 | 2170385 taniquetil
taniquetil's picture

"I never gave any instruction to anyone at MF Global to misuse customer funds."


-John Corzine, under oath.


I mean, just look at his face. Would a face like that lie to you?



Fri, 02/17/2012 - 14:07 | 2170463 NotApplicable
NotApplicable's picture

Well, of course he's not lying. Stealing no longer qualifies as misuse, rehypothetically speaking.

Fri, 02/17/2012 - 14:42 | 2170671 CrimsonAvenger
CrimsonAvenger's picture

That's a hilarious quote - as long as he didn't say it verbatim I'm sure it's true in his legalese mind.

"Hey, you - misuse those funds! And you, stop sitting around - go kick a girl scout in the stomach!"

Fri, 02/17/2012 - 15:20 | 2170879 SAME AS IT EVER WAS


Fri, 02/17/2012 - 13:35 | 2170269 guasilas
guasilas's picture

So the politicians forego 100 billion in revenue, and add 100 billion in spending.  This is the only sort of measure they can agree on. 

Good luck, America.

Fri, 02/17/2012 - 14:54 | 2170740 CrashisOptimistic
CrashisOptimistic's picture

Correct.  And the media phrases it as "stimulus" despite the fact NOTHING CHANGED!  It's neutral.  Not stimulative.

It just avoided being destimulative in an election year and the price is to defund Social Security by 33%.

Fri, 02/17/2012 - 17:42 | 2171505 sun tzu
sun tzu's picture

They can reduce the payroll tax to zero for all I care. I'll never see a dime of it anyway. The system will collapse long before I retire

Sun, 02/19/2012 - 07:18 | 2174549 Kobe Beef
Kobe Beef's picture

I think that's an interesting thought experiment: reduce payroll tax to zero, defund Social Security overnight. Cancel Medicare at the same time, for the lulz. A whole slew of heart attack victims among retirees, followed by suicides among the newly "under-saved" population. Watch life expectancy take a sudden drop.

Sort of like when the USSR collapsed. Except the USSA is nominally capitalist, so I bet when it comes here it's called something cute & marketable like "Downsizing". It won't be pretty.

Is there anyway to avoid the Ponzi collapse? Von Mises says no. I guess it's our turn to find out.

Fri, 02/17/2012 - 13:35 | 2170274 Conrad Murray
Conrad Murray's picture

Obama's newest campaign commercial. Excellent.


Fri, 02/17/2012 - 13:37 | 2170286 WestVillageIdiot
WestVillageIdiot's picture

It's "Mourning in America". 

Fri, 02/17/2012 - 13:40 | 2170295 WestVillageIdiot
WestVillageIdiot's picture

I got 2 minutes into that and wanted to throw up.  I had to stop it.  Too sad to continue. 

Fri, 02/17/2012 - 13:47 | 2170344 Conrad Murray
Conrad Murray's picture

Yep. Now wait until later tonight when you realize it's been playing in your head all day long.

Fri, 02/17/2012 - 13:51 | 2170378 WestVillageIdiot
WestVillageIdiot's picture

You motherf--------.

Fri, 02/17/2012 - 13:43 | 2170318 Seasmoke
Seasmoke's picture

they can speed up the 9 months to around 7 months safely.....so its fuck and only 7 months and an undercooked baby to the big bucks

Fri, 02/17/2012 - 13:43 | 2170320 slaughterer
slaughterer's picture

"It's free, swipe yo EBD

All you got to do is f=ck, and 9 months later you got a big butt."

Fri, 02/17/2012 - 15:16 | 2170858 SAME AS IT EVER WAS

Visa, MC, and AE are for chumps! I got's my EBT bitchez!

Sun, 02/19/2012 - 07:19 | 2174551 Kobe Beef
Kobe Beef's picture

Ain't no monthly bills and shit, neither.

Fri, 02/17/2012 - 13:36 | 2170275 Seasmoke
Seasmoke's picture

and its gone

Fri, 02/17/2012 - 13:36 | 2170278 BORT
BORT's picture

I beg to differ with the conclusion that this benefit is offset by rising gas prices.  The ruling  is a continuation and adds no benefit to the consumer.  High gas costs, and food, are real and additive to the pain of loss of higher paying jobs, more transfer of health care costs and loss of retirement benefits; such as at GM.  The consumer just sees no added benefit, and only more pain.

Fri, 02/17/2012 - 13:41 | 2170301 WestVillageIdiot
WestVillageIdiot's picture

But GM just announced record profits.  Everything is fixed.  Isn't it?

Fri, 02/17/2012 - 13:47 | 2170342 Tyler Durden
Tyler Durden's picture

Good point. We just wanted to keep it simple.

Fri, 02/17/2012 - 14:53 | 2170737 Don Birnam
Don Birnam's picture

"Payroll Tax-Cut May Be Offset by Rising Gas Prices"

Your admiring scribes at CNBC posted this headline and accompanying de facto plagiarization at 1:03 PM.

Ty's is time stamped 12:31.

Fri, 02/17/2012 - 15:22 | 2170792 Dr. Richard Head
Dr. Richard Head's picture

I like to blast ZeroHedge articles in response to Joe Weisenthal's tweets.  He has yet to respond to any of them.

My favorite recent one was one where retails sales showed largest drop and I was able to send it to @thestalwart after he twatted that he expected good retail numbers this morning. 

The timeliness of this site makes me giggle.

Fri, 02/17/2012 - 14:44 | 2170676 Nobody For President
Nobody For President's picture

Oh damn, you mean we consumers are NOT going to break even?

"You can't win.

 You can't break even.

 You can't even leave the game."


Fri, 02/17/2012 - 17:44 | 2171515 sun tzu
sun tzu's picture

Only a terrorist would try to escape this rigged game

Fri, 02/17/2012 - 17:47 | 2171522 Flakmeister
Flakmeister's picture

You basically just paraphrased the Laws of Thermodynamics....

Fri, 02/17/2012 - 13:36 | 2170279 VulpisVulpis
VulpisVulpis's picture

Up next: "Stimulation Czar"


Fri, 02/17/2012 - 13:39 | 2170293 taniquetil
taniquetil's picture

Be careful how you phrase that. We already have enough people in the government watching porn on the taxpayer's dime.

Fri, 02/17/2012 - 14:00 | 2170418 yabyum
yabyum's picture

Stimulation Czar?!?! Do they control the hookers and blow?

Fri, 02/17/2012 - 14:09 | 2170478 NotApplicable
NotApplicable's picture


Fri, 02/17/2012 - 13:37 | 2170281 Shizzmoney
Shizzmoney's picture

LOL Obamaments

There was a PSA that he did where he encouraged people to write their representative about how much $40 dollars means to them (about mean avg of what benefit the payroll tax deduction gives us).

I wrote in to mine as said, "Do you assholes even remember when $40 used to be WORTH something?"

Shit won't even pay for a week's worth of groceries.  I mean, I'll take it......but it doesn't solve our problems, or won't be of that great use to our economy.

Up next: "Stimulation Czar"

They already have that.  His title is "Head of the Federal Reserve"

Fri, 02/17/2012 - 13:42 | 2170314 WestVillageIdiot
WestVillageIdiot's picture

"Dear Mr. or Mrs. Senator,

I just wanted to let you know that forty dollars to me means one silver eagle and a large cherry Slurpee.  Please don't take away my Slurpee.

U.S. taxpayer"

Fri, 02/17/2012 - 13:36 | 2170283 PaperBear
PaperBear's picture

This is a zero sum game, while it may look like you gain you are really only back to square one.

Fri, 02/17/2012 - 13:43 | 2170319 WestVillageIdiot
WestVillageIdiot's picture

I think you get sent back 4 squares to Luxury Tax. 

Fri, 02/17/2012 - 13:40 | 2170296 espirit
espirit's picture

If I understand this correctly, your SS benefits if and when collected will be decreased by the 2% or so rebated.

Wowza, livin' large.

Fri, 02/17/2012 - 14:11 | 2170502 NotApplicable
NotApplicable's picture

Well, at least forty bucks is worth far more today than when that magical day arrives.

Fri, 02/17/2012 - 13:40 | 2170302 WALLST8MY8BALL
WALLST8MY8BALL's picture

I was born in a 2 party brain drain

And I howled cuz CNN drove me insane

But it's all right now, even though I can’t get gas
Senate Payroll Tax has passed passed passed!

I was raised by a toothless, bearded Bernanke
I was schooled with a strap right across my back
But it's all right now, even though I can’t get gas
Senate Payroll Tax has passed passed passed!
I was drowned, I was washed up and left for dead

I fell down to my feet and I saw they bled
I frowned at the crumbs of a crust of bread
Yeah, yeah, yeah
A cop pepper sprayed my head!
But it's all right now, even though I can’t get gas
Senate Payroll Tax has passed passed passed!

Senate Payroll Tax has passed passed passed!
Senate Payroll Tax has passed passed passed!


Fri, 02/17/2012 - 13:41 | 2170307 Mr. Lucky
Mr. Lucky's picture

Vaporized bitchez.

Fri, 02/17/2012 - 13:44 | 2170321 JPM Hater001
JPM Hater001's picture

Did anyone else see this bill: H.R.3672 - Disaster Relief Appropriations Act, 2012

We are allocating 6.4 Billion for Disaster Preparedness through the end of fiscal 2012...Did I miss something?

For an additional amount for the ‘Disaster Relief Fund’ for major disasters declared pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), $6,400,000,000, to remain available until expended: Provided, That such amount is designated by the Congress as being for disaster relief pursuant to section 251(b)(2)(D) of the Balanced Budget and Emergency Deficit Control Act of 1985.

Fri, 02/17/2012 - 14:20 | 2170569 NotApplicable
NotApplicable's picture

Likely all to be spent on NapalitanoVision units to be installed on every street corner.

Those things remind me of all of the stupid electronic signs now on the interstate highways.

Yesterday, "Don't drive distracted. DOT cares."

Another good one, "Motorcycles are everywhere!" This one makes me paranoid, because I can never find any of them.

Only once have I seen an actual Amber Alert, and it was completely worthless, giving no relevant info.

Do NOT follow this link or you will be banned from the site!