“The payroll tax is a fixed percentage of an employees pay. Allowing the tax cut to expire will increase taxes on wages and salaries by 2 percent for every American worker. Up to $110,100 a year in pay is subject to the tax.
Because of the expiration of the payroll-tax cut, a worker earning $50,000, for instance, would pay $1,000 more in taxes next year.”
Quotes from link below: End of payroll-tax break will end era of tax cuts...
Until and unless Social Security is dramatically reformed, we are better to pay the extra 2 percentage points. If the government had any sense, they wouldn't have cut payroll taxes in the first place.
All this tax cut did was to put Social Security in an even more precarious position. It was touted as a way to spur economic growth but it couldn't and didn't.
Only cuts to capital gains taxes and income tax marginal rates can spur the economy.
There was no “payroll tax cut”. There was a temporary suspension of 2% of the payroll tax, as a form of stimulus payment.
That tax cut was unsustainable. We are already not collecting enough SS tax to pay for the SS benefits, and stealing 2% of the SS tax money just made things worse.
The resumption of the full SS payroll tax should be one thing all conservative can agree on — if there is going to be a social security, and we aren’t able to get rid of it, it should be paid for. And the SS tax is one of the few taxes in our country that is actually evenly applied to everybody.
We need everybody paying taxes. We don’t need to play games with the payroll taxes.