See also: The Importance of Extending Both the Payroll Tax Cut and Emergency Unemployment Benefits, No Time to End Unemployment Benefits by Heather Boushey, and Our Economy Needs Help Now by Heather Boushey
The Senate is expected to vote in early December on extending the payroll tax cut that boosted the paychecks of 160 million American workers at a critical time for our economy. Congress must act before the end of the year to prevent the 2 percent reduction in all workers’ paychecks from disappearing in January, which will happen if the payroll tax cut now in effect is not extended.
The Senate bill, the Middle Class Tax Cut Act, would both extend and expand the tax cut, cutting workers’ share of the Social Security payroll tax in half, to 3.1 percent for 2012. The bill also provides payroll tax relief for employers, targeted toward small businesses and new hires.
The Middle Class Tax Cut Act will benefit every one of the approximately 160 American workers who pay payroll taxes. The map below shows how much it will add to the take-home income of a typical family in your state.