The last few months of 2011 were filled with a bickering, do-nothing Congress arguing about tax cuts, the budget, and pretty much everything else. A last-minute deal was made to extend the payroll tax cut for two months, and in just a couple of weeks, those two months will be up.
So what does that mean? Unless Congress acts, your taxes are going to go up. The payroll tax cut gives families making $50,000 a year an additional $40 per paycheck, on average.
President Obama dedicated his weekly address to the topic, a plea that may sound awfully familiar to you.
“Now, if this sounds familiar, it’s because we’ve been here before. Back in December, Congress faced this exact same predicament. Ultimately, thanks to your voices, they did the right thing — but only after a great deal of bickering and political posturing that put the strength of our economy and the security of middle class families at risk. We can’t go through that again.” Source: The White House
Photo: Melissa Hincha-Ownby/Flickr