Shortly after midnight Thursday, Ohio Republican John Boehner announced on Capitol Hill that a deal has been negotiated to extend the payroll tax cut for 160 million American workers. The measure will continue the reduction in the payroll tax for the remainder of 2012, as well as settle other issues such as unemployment benefits and the doctor pay for Medicare. Some will say the White House has won a victory as House Republicans seem to have caved in on how to pay for the tax reduction. They simply are not going to pay for it, letting the some $120 Billion dollar cost be added to the National Debt. Hey, why not? Barack Obama is already planning on putting $1.3 Trillion on the nation′s credit card.

payroll tax cut deal

The hard part now is for Boehner to convince enough House Republicans to go along with the scheme. Our nation′s finances are one gigantic mess. Obama has already added nearly $5 Trillion dollars to the National Debt and his new budget proposal, which Harry Reid will not even allow a vote on, is set to add another $9 Trillion in debt over the next decade. And that is based on an average growth rate in GDP of 4% per year. Since Obama took office, the growth rate has been half of that.

So once again our leaders appear to be ready to kick the can down the road until next year. With 2012 being an election year, everything depends on the outcome of the election. If Obama and the Democrats win back the House and keep the White House and the Senate, then we can look forward to America going bankrupt within another year or two. Part A of Medicare will be busted by 2017, if not as early as 2014. The rest of Medicare will be bankrupt by 2022. Social Security is not far behind that.

Of course, it is the very payroll taxes that are being cut which fund those entitlements. Which means we′ll have to borrow more from China, or just print more cash so the Federal Reserve can buy our own bonds and continue to monetize the debt. Tonight on the Fox Business Network show, ″Stossel′, reporter John Stossel takes to the streets of Manhattan to show people the problem in terms of a family budget.

He first shows a group of random people a family budget where they bread winner earns only $24,000 a year, spends $37,000 a year, has an outstanding credit card bill of $153,000 and proposes only to cut spending by some $385 for the whole year. Everybody agrees that this is no way to run a family′s finances. Then Stossel flips the chart to the opposite side which adds eight Zeroes to each set of numbers, showing the propsed Obama budget for 2013. Everybody agrees that its time for new leaders in Washington.

Oh well, never mind that a payroll tax cut deal was struck last night that offers no plan to pay for it. How John Boehner, the Ohio Republican, intends to sell the idea to other House Republicans on Capitol Hill is questionable. The Barack Obama White House senses victory if the measure is passed.