I have argued here that the Bush payroll tax cuts WILL be extended….
This piece linked below (by the New York Times) pushes for it to expire….
Now…..IF it WAS to expire it would surely help the deficit come down…
But with that ….
The Democrats and Republican’s saddle themselves with a tax increase to defend come 2014….
The President wants a increase in the upper income ranks, but won’t get that from the Republicans…
The tax increase will hit the Middle Class directly….
The people who NEED the money more and ALWAYS do the Heavy lifting…
Lets see if the issue is dealt with politically which would have a last minute extension….
Which would have the tax extension expire….
The payroll tax holiday this year has reduced workers’ tax on wages up to $110,100 to 4.2 percent from 6.2 percent. In 2012 that translated into a $700 tax cut for a person making $35,000 a year and a $2,202 tax cut for workers making $110,100 and up.
Last winter, the White House pushed a resistant Congress hard for an extension, arguing it was needed to support the flagging recovery. The White House set up a campaign for Americans to send in stories about what they would do with the extra $40 in their paychecks, and denounced Republicans as not wanting to aid the middle class.
“For the typical American family, it is a big deal. It means $40 extra in their paycheck. And that $40 helps to pay the rent, the groceries, the rising cost of gas,” President Obama said, standing with some of the families who had sent in stories.
The other provisions at stake in the fiscal cliff negotiations overshadow the payroll tax cut.
The Congressional Budget Office has calculated that according to current law, the federal deficit would fall by more than half a trillion dollars from the 2012 fiscal year to the 2013 fiscal year. The expiration of the Bush tax cuts and other provisions would reduce the deficit by $221 billion….
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