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Inside Obama's Twitter Blitz On the Payroll Tax

Hugh Pickens writes "Brandon Rittiman reports that White House officials launched a Twitter campaign Tuesday to put pressure on Congress to reach a deal extending the payroll-tax cut. Using the Twitter hashtag #40dollars, the White House successfully got thousands of people to respond and explain what a $40 cut to each paycheck would mean to them personally. By Wednesday morning, the #40dollars hashtag started 'trending,' which is what happens when Twitter's algorithms see a topic suddenly surge. It's not easy to create that kind of surge, but the White House has 2.5 million Twitter followers to call upon. Macon Phillips, the President's Director of Digital Strategy, says his team has managed to get a few Twitter topics to rise to the level of 'trending' before — most notably when they began tweeting about the death of Osama bin Laden. 'What's very important about a social-media campaign like this is that regular people are making the point about how this would affect them. It's not us here in Washington trying to argue on their behalf.' says Phillips. 'The #40dollars campaign puts a face on that amount to demonstrate the payroll tax cut's real-world impact on middle-class families.'"

15 of 294 comments (clear)

  1. *yawn* by Anonymous Coward · · Score: 5, Informative

    The disagreement was never over the payroll tax holiday. The disagreement was over how to pay for it. The President's initial proposal was to pay for it with the millionaire's surtax, which he knew that Republicans opposed before he proposed it.

    For Democrats who are pretending to not understand, this would be the equivalent of the Republicans proposing to pay for it by slashing Obama Care, and then accusing the President of being against the payroll tax holiday when he came out against the legislation.

    For some reason, the media has used this as a huge opportunity to bash Republicans. Want to know why Republicans don't want to extend the tax holiday for two months? They don't want to go through the same media circus again in two months.

    The bias of our media is pathetic. The stupidity of our population is tragic. The fate of our people is obvious. Next year we elect the last President of the United States. We face serious problems in the next five years, and the media has successfully kept anyone remotely competent out of the race.

    This is going to be hilarious.

    1. Re:*yawn* by sandytaru · · Score: 4, Insightful

      The thing is, it's only Republican legislaters that are so darn against the millionaire's surtax. The majority of Americans are okay with it, and a great deal of millionaires are also okay with it. The only people fighting it tooth and nail are those who kissed the ring of Grover Norquist, and those whose districts are held hostage by the Tea Party. Oh, and delisional Tea Partiers who are retired or unemployed yet somehow believe they'll be making a million bucks a year ANY DAY NOW.

      --
      Occasionally living proof of the Ballmer peak.
    2. Re:*yawn* by AJH16 · · Score: 4, Insightful

      Yeah, as much as I hate how biased Fox news is, CNN surprised me with something I happened to catch when I was in the grocery store and happened to see it on. They were talking to one of the Republican presidential hopefuls about what his view on the whole thing was and he was answering quite well I thought (in terms of explaining his view) that he didn't want to gut the money from elsewhere and that he thought that there needed to be some way to fund the tax cut and was being pretty clear that while he didn't like the idea of allowing it to expire he wasn't seeing an alternative that he thought would work, but the anchor would not let go of trying to ask him if he was in favor of raising taxes even though he was already being pretty direct at stating his view. The CNN anchor was clearly trying to corner him in to having to say something unpopular as opposed to having a dialog and talking about the issues it would cause. It was politics not news and appeared very clearly biased to me.

      --
      AJ Henderson
    3. Re:*yawn* by Anonymous Coward · · Score: 4, Insightful

      Are there really people out there that decide whether to hire or fire based on their personal income tax?

      If a business is set up to make money to begin with, seems like it'd make more sense to base hiring and layoff decisions around meeting demand. And it would logically follow that policies that increase demand will benefit "job creators" more, unless their taxes are so severe (like, say, 100%+) that meeting increased demand costs them money.

      People who make all their income from investments might not like it very much, but by the same token, how many of them hire and fire or base their investment decisions on their personal tax rate?

    4. Re:*yawn* by Mitreya · · Score: 4, Insightful
      Oh, and delisional Tea Partiers who are retired or unemployed yet somehow believe they'll be making a million bucks a year ANY DAY NOW.

      I think you forgot to mention one more detail that is important. The tax is marginal - you are taxed on income above 1 million! That is, anyone making 1 million a year will be unaffected by it and anyone making 1,000,100 will pay $2.5 (or $3.5, dollars, I forget) extra taxes. You have to make well over (i.e. several) a million to care.

    5. Re:*yawn* by burning-toast · · Score: 5, Informative

      And pay a disproportionally large amount of tax. First they fall into the highest tax bracket of 35% then pay AMT on top of that, plus capital gains on anything else.

      You can be certain that no millionaire pays the full %35 on income tax. They would have to be completely ignorant and stupid about how to handle money.

      I work in the financial industry surrounded by people IN that income bracket. What they do is transfer funds or take their income directly into non-liquid (non-cash) capital like stocks, bonds, mutual funds, real-estate, stock ownership whatever. Then they roll their cash over, and over, and over again by transferring it between these assets when they are performing well. This increases the total assets they own without it showing up on their "income" sheet. They bankroll money generating schemes and occasionally start small businesses (mostly geared around how to make themselves more money), but rarely do they start something like a public service industry or a manufacturing firm fresh. They would more likely buy an existing company, layoff 1/2 of the staff, reduce worker pay, "increase productivity", offshore any software development, etc. and then sell their stakes in the company (frequently in exchange for other non-cash assets). This is exactly how Romney has made his money and is exactly where he holds his cash (assets within other companies). He is living off of the dividends payed to him for this sort of work to this day. He no longer "works" for those companies, but he does draw a paycheck. I can assure you he has never done any of the work OF the companies he was employed by either. It's always been in a "how to maximize profits by gutting the existing setup and doing something different" sort of a position.

      When they need some liquid assets (cash) they will take it out and pay a 15% capital gains tax or they will run it through another tax shelter (like off-shore accounts). I have known some to pay each other directly in non-liquid assets (trade a ton of stock in something for real-estate, no one made "income" that way).

      Most do not create jobs, instead they use their personal income to steam-roll gathering more personal wealth. They buy holdings, stakes, yachts, real estate, and other assets.

      Unless you are part of the 1% you cannot adequately defend the 1% as you apparently do NOT have any idea how simplistic your life becomes when you stop living on your paycheck and instead live on your dividends from your existing assets (which are further increasing in value on their own over time). This is exactly why many of the top earners have said, point blank, "Go ahead and tax me more, I can take it!", because you know what happens? They pay their additional on the taxable direct income (which frequently is a fraction of their total assets gained / year) and it still doesn't matter to them because most of their big assets and holdings are tied up in real property, stocks, bonds, etc.

      Just let me ask you how many jobs it creates if you buy 100,000 shares of stock in a company outside of it's IPO. How many does it create when you sell them?

      Simple answer: none, other than hiring a stock broker. But you CAN live on the dividends of those shares (depending on the company) and you can make a killing if you keep moving your stock holdings around in the market.

      The extremely wealthy really don't tend to invest in human capital that much, it's not reliable enough ROI.

      - Toast

  2. Using the media to hide the impact by drainbramage · · Score: 5, Interesting

    Isn't thei tax the source of funding for SSI?
    It looks like saying "I'm cutting the payroll tax" == "I'm bankrupting SSI faster than ever!"
    SSI is in the red, this will not help, it will hurt 'real-world' 'middle-class families'.
    This goes well past obfuscation and looks like intentional dishonesty to me.
    This will hurt everyone.

    --
    No brain, no pain.
  3. #650billionformilitaryisstupid by Dan667 · · Score: 4, Insightful

    should be the next tag the white house pushes. The US cannot afford spending $650 billion on a military we don't need.

  4. Well, this one is. by cje · · Score: 5, Insightful

    I hate to say it, because it's horribly unpopular from a political perspective, but this payroll tax "holiday" is just disastrous policy. Depending on what numbers and what year you're looking at, anywhere from 81 to 89 percent of the entire U.S. budget goes to two things: defense and entitlements. And of those entitlements, the biggest long-term liabilities and problems that we have are Social Security and Medicare.

    When you hear these Presidential candidates talk about how they would fix the budget deficits by getting rid of things like the EPA, the IRS, the Departments of Commerce / Energy / Education, etc., then you know should know that they are not making any sort of good-faith effort at solving the problem, and that they cannot be taken seriously. The dirty little secret is that you could cut out 100% of the discretionary non-defense spending (i.e., everything except for the military and entitlements) and you would have barely made a dent in the problem as a whole.

    The whole purpose of the payroll/FICA tax is to provide funds for Social Security and Medicate. Again, these are the two biggest problems that the U.S. has from a budget perspective -- biggest by leaps and bounds. So not only does this policy make the deficit problem worse, it makes it worse in the worst possible way. Politicians can claim that these tax cuts are "paid for", but everybody knows that these types of Washington claims are usually just shell games for political purposes.

    For what it's worth, I like the fact that the payroll tax holiday disproportionally benefits those towards the lower end of the income scale. But there has to be a better way to do this, especially at this critical time in history when the Boomers are retiring and we're going to need these trust funds more than at any time in our history.

    --
    We're going down, in a spiral to the ground
    1. Re:Well, this one is. by roman_mir · · Score: 4, Insightful

      You should vote Ron Paul then, because nobody else will cut militarism and bring all troops home from across the globe and would reform the SS and Medicare to keep taking care of people who are on those programs now, the elderly and the children, while giving people option to opt out (at first just the people under age of 25, but eventually to let anybody opt out as these programs will be shut down.) And SS and Medicare will be shut down, whether Ron Paul is elected or not, it's just with Ron Paul the way to shut them down will be gradual, allowing the current recipients to keep getting their support (but probably means testing in order to cut costs). If it's not Ron Paul, then the way these programs will be shut down is going to be by the dollar crashing and the loss of purchasing power will mean that the nominal numbers on the coming checks will buy nothing.

  5. Re:But by Osgeld · · Score: 5, Interesting

    As a fairly regular FOX radio news listener (know thy enemy and all that rot) I can assure you that this IS the tripe they spit out on a daily basis ... which is what the parent post stated, not REP vs DEM's.

    If nothing else its the more vocal nutters from the TP that are harping every single day that things like extending unemployment during a very high period of unemployment is a terrible thing to do as it encourages dependence, but giving tax breaks to people / companies that already exploit every single loophole in loopholes is a 100% sure fire way to grow the economy.

    I am personally somewhere in the middle, yes people do not need to be accustom to a handout, but giving megacorp a break is just going to help Brazil, India and China cause at the end of the day their only goal is to squeeze every single ounce of profit that they possibly can by any means necessary.

  6. Re:Social Media: Removing Money from Politics by thePowerOfGrayskull · · Score: 5, Insightful

    Especially when it's being used by politicians to manipulate people who don't actually have a broader understandimg of the issues at hand. Yep, great to see.

  7. Re:But by artor3 · · Score: 4, Interesting

    No Democrat has ever claimed that all tax cuts are evil. That's just a flagrant lie. By contrast, the Republicans do claim that taxes are always bad and should only ever go down. So why are they set against this one?

    Answer: They're not. They're just taking hostages, again. Just as when they secured the extension of the Bush tax cuts on the rich by threatening to cut off unemployment benefits around this time last year. Or when they forced cuts to discretionary spending by threatening to force the country into default. This time they're trying to secure a new oil pipeline, and probably other concessions, by threatening to raise taxes on the middle class.

  8. Re:But by ninetyninebottles · · Score: 4, Informative

    The Republicans (and apparently the President) wanted the tax holiday extended all year. The Democrats talked them down to two months.

    You should really pay more attention. The Democrats presented a plan to extend the payroll cut for a year and keep medicare payouts at the same level. The Republicans presented a plan to extend the payroll cut for a year while at the same time guaranteeing the oil companies can build a pipeline from Alaska to the Gulf through protected wildlife refuges. Both groups compromised on extending it for two months (with some republicans trying to stall it) in order that they might argue more about which additional things should be added. Mostly, the Democrats have been trying to pass the cuts while the Republicans are refusing until they get the oil company benefits they promised lobbyists.

    Claims that it is the Democrats that are preventing the passage of these tax cuts on a longer time frame is either disingenuous or reflects a twisted perception of reality. Stop watching Fox "News".

  9. Re:But by porges · · Score: 4, Informative

    In case it really has to be said yet again: the poor often have no federal income tax liability, but if they are working poor, they still have to pay Social Security and Medicare taxes, which are deducted from one's paycheck, which is why they're called payroll taxes. These taxes are deducible from gross income, but you don't get the taxes themselves back on April 15th. And it was these taxes that the current tax cut is about.