Monday, January 2, 2012

Understanding Congress' payroll tax cut fight - where your money went !










— If President Barack Obama, the House and the Senate all want to extend a Social Security payroll tax cut and jobless benefits through next year, why are they fighting so bitterly over doing it? Obama, House Democrats and lopsided majorities of both parties in the Senate want to immediately renew the tax cut and jobless benefits for the next two months, and find a way later to extend them through 2012. House Republicans want to do it for a full year right away.

That doesn't sound like an unbridgeable gap. Yet the fight has evolved into a year-end partisan grudge match with no clear resolution in sight and with huge political and economic stakes.
Without action, the payroll tax paid by 160 million workers will rise by 2 percentage points to 6.2 percent on Jan. 1. That would mean $1,000 a year less in the pockets of people making $50,000, or about $19 weekly. In addition, 3 million people currently receiving long-term jobless benefits will begin to lose weekly payments that average under $300 — for many, their only support.

See entire article HERE!

6 comments:

  1. I really hate it whenever I see my tax go up as my salary increases. I asked the small business payroll services how tax is really calculated. I got the logic but it would have been better if our tax really goes to where it's supposed to be.

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