Gee, thanks, John Boehner. Thanks to your last-minute cave on taxes, the taxes on pretty much every employed American are set to go up by about a thousand dollars.
The Wall Street Journal explains:
The workers’ share of the Social Security payroll tax had been lowered by two percentage points for the past two years, to 4.2% from 6.2%, amounting to an annual income boost of $1,000 for a typical U.S. family earning $50,000 a year. It provided an increase of as much as $2,202 this year for a worker earning $110,100, the maximum wage subject to the payroll tax.
The end of the tax break would effectively raise taxes for all wage earners next year, a potential surprise for many despite the expected extension of most individual income-tax rates. That would mean the highest tax burdens since 2008 for most U.S. households, before the Obama administration pushed a tax credit in the 2009 stimulus law and the payroll-tax break.
I’ll be listing those Republicans who voted for this bill in a separate post. (Okay, two separate posts, one for the House, one for the Senate.)
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