Washington DC: A temporary extension of the payroll tax holiday was signed into law by President Obama such that the 2012 paychecks of working Americans wouldn't change for two-months, while Congress hammers out a one year extension.
The media harped on the two month extension proposed by the Democratic controlled US Senate vice a one year extension proposed by the Republican controlled US House as being the sticking point. However, President Obama was miffed about not getting a millionaires tax to offset the payroll tax holiday's lost revenue, knowing that Republican House Speaker Boehner would never agree to this proposal. The Republicans in the House demanded the cost be offset by cuts in spending elsewhere, not tax increases.
The EPA Administrator Lisa Jackson approached President Obama and Democratic Senate Majority Leader Reid with a proposal to control water pollution and generate revenue. A $2.00 per gallon surtax would be added to beer sales based on the fact that working Americans drink 20 gallons of beer per capita each year. The $12 billion in new revenue would contribute to paying for the payroll tax holiday extension. The proposed beer tax was tacked on to the Senate bill, as Democratic liberals only drink wine anyway.
When the Senate bill arrived at the House Chamber Republican House Speaker Boehner said, you Democrats want working Americans to pay a "Piss Tax" during this recession? "Piss Off!" Needless to say, Democratic Senate Majority Leader Reid dropped the beer tax proposal and Republican House Speaker Boehner acquiesced to a two month extension of the payroll tax holiday. The additional revenue is to be gotten from working Americans who buy a house, via any federal loan program, paying increased fees!
