A project of The George Washington University Contact us at factdesk@facethefactsusa.org

Holiday hangover: The cost of cutting payroll taxes

A two-year, 2 percent cut in federal payroll taxes that fund Social Security and Medicare is set to expire at the end of 2012.

Holiday hangover: The cost of cutting payroll taxes

The holiday may be over. A two-year, 2 percent cut in the federal payroll taxes that fund Social Security and Medicare is set to expire. The tax break put $717 into the pockets of the average American worker this year.

Congress approved the cut, and could act to extend it. While the tax holiday put more money into workers’ hands during tough economic times, it also added to the deficit -- $101 billion in 2012 alone.

Check out our infographic for more details. See “What Do Others Say?” and add to the discussion below. Is it time to end the tax holiday? 

What do others say?

  • : ProPublica: “Decoding the payroll-tax cut: How well does it work?” More

  • : Center on Budget Policy and Priorities: “Letting payroll tax cut expire would shrink worker paychecks and damage weak economy” More

  • : Tax Foundation: “Tax Foundation releases MyTaxBurden.com calculator” More

Show more
To suggest an addition, contact the factdesk@facethefactsusa.org
comments powered by Disqus

Recent Facts

In Association With