When you ring in the New Year you will also be ringing in the pre-Bush tax break payroll tax adjustment. Why? Both sides of the isle have decided and agreed that the payroll tax adjustment is needed to secure the solvency of Social Security.
The Republicans have remained silent over the middle class payroll tax break. If there’s any fighting and negotiating to be done, it will come in other areas. Not middle class payroll tax.
So what does all this mean? If you’re making $50,000 a year you’ll be paying about $80 more a month in payroll taxes.
Last year, Dems and Repubs fought over this very issue. The Republicans admittedly wanted to end the payroll tax break. The Dems wanted to keep the tax break the same for the middle class.
On average, the payroll tax break has added about $1,000 in a family’s annual budget for 160 million Americans.
How have things changed? The economy hasn’t picked up speed as well as expected. Every major jobs bill has been blocked by the Republican lead House for several years now. That’s a fact, not an opinion. Every major bill!
Also, by not letting the tax break expire as it’s set to do on December 31, 2012-there is reason to believe that Social Security will be in jeopardy. Never mind that over a trillion dollars has been spent on two wars over imaginary issues.
Another thing to keep in mind is that Mitt Romney never ran his campaign saying he was lowing the taxes for the middle class. In fact, he was not. Romney and Ryan advocated lowering even further the taxes on the wealthiest 1% of Americans. The Ryan plan would have taxed the middle class even more to make up that difference. Romney/Ryan argued that even if the middle class had to pay more taxes, they would-collectively-make that money up by having increased wages from monies reinvested into the economy by the wealthy 1%.
Never mind that in the history of the United States that has never happened. It didn’t even sound good on paper. But, what it did do was bring in a Hell-of-a lot of PAC money for the Republicans from wealthy bluebloods.
So, now you know the real truth behind the payroll tax cuts. They were set to expire anyway. The Dems tried to postpone it as long as possible. The Republicans never wanted to keep it in the first place.