Pay Freeze to Extend Payroll Tax Reduction

[MakeMe$$$$]

...

We aren't talking here about fighting for Federal employees to get bonuses or raises here we are only talking about getting a small cost of living increase that keeps them caught up with inflation. By denying them a cost of living raise it is in reality a pay cut!

Not only is it a pay freeze but the chain it creates is reduction in retirement because of delayed pay increase. For some close to retirement it creates a de facto high 4-5. For those a long way off, cost of living raises probably will not make up the difference between freeze and non-freeze models.

[MakeMe$$$$]

FedSmith: Federal Employees Should Pay for Job Security

http://www.fedsmith.com/article/3211/sherk-federal-employees-should-pay-job.html

While I expect Unions to be all over the issue of SS Tax Holiday, I am not sure I agree with this:

The letter (http://www.scribd.com/doc/75049656/Federal-Postal-Coalition-Letter-Opposing-Pay-Freeze-Extension-Workforce-Reductions) also calls for providing a tax credit "equal to the payroll tax holiday to those workers who do not participate in Social Security." Presumably, this is referring to CSRS employees.

However the rest of the article is more than interesting.

[flight23]

I think federal job security should be abolished, it is probably one of the major problems with the government. Everyone should be an at-will employee... if you do a crappy job you should be able to be fired, period. A review process is fine but the current state of affairs is ridiculous. If we could fire people for sub par performance in our department then I can think of 7 people in my department that would be fired tomorrow. There is far too much complacency because no one fears losing their job for doing C or D level work.

[BigMike]

I agree with you Flight.

At the same time I am amazed at the insanity of Sherk's idea to trade off something for job security?

This kind of crap is exactly what I should expect to come out of a think tank like the Heritage Foundation though.

[BigMike]

...

We aren't talking here about fighting for Federal employees to get bonuses or raises here we are only talking about getting a small cost of living increase that keeps them caught up with inflation. By denying them a cost of living raise it is in reality a pay cut!

Not only is it a pay freeze but the chain it creates is reduction in retirement because of delayed pay increase. For some close to retirement it creates a de facto high 4-5. For those a long way off, cost of living raises probably will not make up the difference between freeze and non-freeze models.

I have never seen them take any action aimed at catching up previously withheld cost of living increases.

While thinking about this looming withhold of cost of living I was reminded of what they did some years ago to FERS employees as it relates to cost of living increases for FERS retirees. CSRS retirees receive cost of living adjustments to their retired pay each year tied to the Consumer Price Index. That is as it should be. FERS retirees also receive a similar cost of living adjustment each year. However, in the case of the FERS retirees the cost of living adjustment is 1% less than the calculated amount that should be given.

I have never found any good rationale for why this was instituted other than for the government to save money on the backs of FERS retirees.

This reduction each year is relatively small in the first year or so. But once again the compounding effect of repeatedly withholding FERS retiree cost of living increases even as minimally as 1% year after year seriously diminishes the true value of the annuity very quickly. Once again there are no provisions of ever getting caught up or "correcting" this targeted draconian policy.

[MakeMe$$$$]

Have a pipeline with that Payroll Tax Freeze?

FOX

http://www.foxnews.com/politics/2011/12/09/house-gop-challenges-dems-with-payroll-tax-cut-bill/

[Jahbulon]

It is insane we don't ghet this pipeline!

[MakeMe$$$$]

It is insane we don't ghet this pipeline!

What I don't like is this kind of mixing unrelated issues into other legislation. It is kind of like how they took away my online poker by putting it in a security bill. BS!

Not sure where I stand on the pipeline thingy. I'm open on that...just don't like the methods.

[Jahbulon]

What!? No online poker! That's insane! Hey Govt, stop protecting us from ourselves!

[MakeMe$$$$]

Have a pipeline with that Payroll Tax Freeze?

...

http://www.washingtonpost.com/blogs/2chambers/post/house-to-vote-tuesday-on-gop-payroll-tax-package/2011/12/12/gIQAb9tCqO_blog.html

[BigMike]

Well the House has now passed the bill to extend the payroll tax cuts and the unemployment benefits that the President has been harping about lately. They added to it a provision for accelerating the approval of the pipeline from Canada though.

Now let's see who is willing and not willing to do a little compromising? So far the President and the Democratic leadership are outraged that they are being asked to give up something to get what they want. They are even threatening to shut the government down again by not passing yet another Continuing Resolution this Friday.

It is a lot like watching one of my kids throw a temper tantrum!

[Jahbulon]

Unions support the pipe line, enviromentalist hate it.

Puts the Prez is a tough spot. Someone is gonna be angry, and he was the one saying "Pass this Bill now! People need jobs!"

Did he mean it? We will see........

[TSPKip]

ALso included are reductions including: "It includes provisions to roll back Environmental Protection Agency rules limiting toxic air pollutants from commercial and industrial boilers, and ban the EPA from proposing a new standard in the near future. It would extend unemployment insurance but cut the maximum unemployment coverage to 59 weeks from the current 99 weeks by mid-2012. And it would prevent a 27 percent cut in Medicare reimbursements to doctors next year -- instead, increasing their Medicare payments 1 percent each of the next two years.

The plan seeks to pay for the extended tax cut and added unemployment benefits by cutting back on social-program benefits, selling federal assets, freezing federal employees' pay through 2015 and cutting the number of federal workers by about 10 percent through attrition."

Read more: http://www.upi.com/Top_News/US/2011/12/ ... z1gYMeCXoz

[Jahbulon]

I concur with you Kip, the EPA needs to be reeled in. They are out of control, killing us.

[Pocono13]

I concur with you Kip, the EPA needs to be reeled in. They are out of control, killing us.

You are a funny guy, Jahbulon. I don't think that Kip said anything about reeling in the EPA.