Wednesday, November 16

Will the Payroll Tax Cut Expire in December

I’ve been reading a lot recently about the expiring payroll tax cut. This cut gives workers earning $50,000 per year a $1,000 tax break. This tax, which supports the Social Security program and is paid by employees, was cut to 4.2% of the first $106,800 of a worker’s income, reduced 2% from 6.2%. The payroll tax cut and unemployment insurance were part of a tax deal that President Obama reached with Republicans last December. Both of which will expire at midnight on December 31, 2011.

The different things that I’ve read say that there will be a drama filled show-down at the end of the year. Some say that the Republicans will not agree to any extension, that their position is “anything President Obama is for, we’re against”, regardless of whether or not it helps or hurts the American Taxpayer.

I can only see this through my eyes and the way I see it is this. Any money that the government has is quickly wasted. Any money that I have helps to support my family.

From a taxpayers perspective, a $1,000 decrease in usable cash is a lot of money. Groceries, telephone, electricity, gas in the car...

I know that extending this cut will put a big strain on Social Security, but frankly, we need the money NOW!

I surely don’t have an answer. Maybe if we veto’d most of the bloated government programs and operated on an austerity budget for a few years, then perhaps things would get better. I know that when things are tight at my house, we trim the wants from the needs. Why can’t we do the same in DC?