Visitors to the White House website are greeted with a big time clock that is counting down the days until the Payroll Tax Cut expires unless Congress takes action to extend it. Right now there are 19 days left for Congress to act but the White House wants to ensure that Americans are prepared for the expiration should Congress fail to reach a decision. A new tool available on the White House website helps Americans calculate how much more they will pay in taxes should the time run out on this year’s tax cut.
The We Can't Wait calculator asks for your filing status, your annual income (no commas, please) and then presents you with a net difference in taxes. President Obama isn’t just asking for an extension of the two percent payroll tax cut in place this year, which saved the average American family about $1,000, he is also asking for an increase of an additional one percent for 2012.
If the payroll tax cut isn’t extended the average family will pay an additional $1,000 in taxes next year and miss out on approximately $500 in additional savings. When you break the $1,500 down into monthly savings, you’re looking at $125 per month. If you are like millions of Americans that are dealing with a tight financial situations then that $125 per month can make a significant impact on your monthly budget.
So what is your opinion on the matter? Should Congress act to extend the payroll tax cut or let it expire?
Image courtesy of 401kcalculator.org.