Neither Republicans nor Democrats eager to argue for extending payroll tax rate
BY: Andrew Stiles
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 …