The Coming Middle Class Tax Hike

Neither Republicans nor Democrats eager to argue for extending payroll tax rate

Credit: Alan Krueger / AP

BY:
November 28, 2012 5:00 am

(WFP)—Employee payroll taxes are scheduled to rise nearly 50 percent in 2013 absent action by lawmakers, and there is a growing sense that both parties might be willing to let that happen.

Party leaders have about five weeks to resolve a host of budget issues to avoid going over the “fiscal cliff,” the term used to describe more than $600 billion in automatic spending cuts and tax increases scheduled to occur on Jan. 1, 2013.

Much attention has been paid to the potential expiration of Bush-era tax income rates, but the looming expiration of the temporary payroll tax cut has been largely absent from those discussions.

The White House released a report Monday detailing the negative economic impact of allowing the Bush-era tax rates to expire for middle-income Americans. It contained no mention of the payroll tax cut, which by the White House’s own estimates affects roughly 160 million Americans and saves the typical middle class family $1,000 per year.

Chairman of the president’s Council of Economic Advisers Alan Krueger awkwardly dodged a question about extending the payroll tax cut during a White House press conference on Monday.

Read more at The Washington Free Beacon

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About Brent P.

Editor-in-Chief at TheRightPlanet.com, writer, tech editor, software engineer, web developer, graphic design, anti-Marxist, pro-American guitar shredding Glock owner.
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