When Congress extended the Bush era tax cuts, one of the benefits to lower income earners was the introduction of a payroll tax holiday. For one year, 2% of your FICA (Social security & medicare payroll taxes) will not be collected and you get a little extra take home pay. The actual benefit depends on your income but this is a tax cut that affects a large portion of taxpayers (basically anyone who has earned income).
It turns out that the payroll tax holiday may be on the chopping block as Republicans look to block it because it do it’s part in “helping to get the economy moving again,” says Representative Jeb Hensarling of Texas (Republican). It’s the latest battleground in the debate over the economy and the federal deficit.
Various pundits will paint this however they’ll paint it but it just seems a bit hypocritical to OK huge tax cuts (the Bush tax cuts) and then point to the deficit when it comes to this one. I guess watching the deficit just happens to be the flavor of the day, I just wish we, the general public as a whole, weren’t so easy to deceive.