United States News
See other United States News Articles
Title: Obama, Romney Won’t Say It, But Taxes Going Up For 163 Million Workers, Regardless Of Election
Source:
Associated Press
URL Source: http://www.washingtonpost.com/polit ... 2-8817-41b9a7aaabc7_story.html
Published: Oct 21, 2012
Author: Associated Press
Post Date: 2012-10-21 18:04:06 by Brian S
Keywords: None
Views: 1568
Comments: 2
WASHINGTON — President Barack Obama isn’t talking about it and neither is Mitt Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election. A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn’t get through Congress anyway, with lawmakers in both parties down on the idea. Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500. Why are so many politicians sour on continuing the payroll tax break? Republicans question whether reducing the tax two years ago has done much to stimulate the sluggish economy. Politicians from both parties say they are concerned that it threatens the independent revenue stream that funds Social Security. They are backed by powerful advocates for seniors, including AARP, who adamantly oppose any extension. “The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire,” said Sen. Orrin Hatch of Utah, the top Republican on the Senate Finance Committee. “The continued extension of a temporary payroll tax holiday has serious long-term implications for Social Security and, frankly, it’s not even clear that it has helped to boost our ailing economy.” The question of renewing the payroll tax cut has been overshadowed by the expiration of a much bigger package of tax cuts first enacted under President George W. Bush. The Bush-era tax cuts also expire at the end of the year, and Congress is expected to try to address them after the election, in a lame-duck session. The payroll tax cut could become part of the mix in negotiations that could go in many directions. But lawmakers in both political parties say they doubt it. “I think there’s a growing consensus that Congress and the president can’t continue to divert such a critical revenue stream from Social Security,” said Rep. Kevin Brady of Texas, a senior Republican on the tax-writing House Ways and Means Committee. “I think more and more Americans understand that that payroll tax cut, while politically appealing, is endangering Social Security.” Before he was named as Romney’s running mate, Rep. Paul Ryan, R-Wis., disparaged the payroll tax cut, calling it “sugar-high economics” that wouldn’t promote long-term growth. Social Security is funded by a 12.4 percent tax on wages up to $110,100, rising to $113,700 in 2013. Half is paid by employers and the other half is paid by workers. For 2011 and 2012, Congress and Obama cut the share paid by workers from 6.2 percent to 4.2 percent. A worker making $50,000 saved $1,000 a year, or a little more than $19 a week. A worker making $100,000 saved $2,000 a year. The beauty of the tax cut is that is shows up in weekly paychecks, giving workers more money to spend or save. The downside is that some workers may not notice a $19-a-week increase in pay, making them unlikely to credit the politicians who made it happen.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Brian S, *Jack-Booted Thugs* (#0)
Both wings of the D&R party need the dough for O'RomneyCare for illegal alien invaders they're giving amnesty to, wars (WW III, also the economic stimulus plan), Homieland Insecurity thuggery, slut supplies & services, foreign aid & WMD's for terrorist allies, more propaganda/troll/gay activist/communist/spies & ratfinks, hitler youth nazis, LRAD's/Tazers/Pepper Spray & balls/SWAT tanks/Drones/UtahDataCenter/FEMA camps w/ gas chambers, and anything else they can dream up. Austerity cuts will be mass graves... save a bundle on coffins. Finally, efficiency in government!
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
Not after buying the gas to get back and forth to work. Thanks, Obama!
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#2. To: Brian S (#0)
The downside is that some workers may not notice a $19-a-week increase in pay
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]