New TPC Payroll Tax Calculator

Last week, Congress extended the payroll tax holiday for two months beyond its scheduled December 31 expiration. The Tax Policy Center has created an on-line calculator that lets users see how the extension will affect them and what would happen if Congress subsequently extends the tax cut for all of 2012. The calculator compares the amounts of payroll tax that would be withheld from a worker’s paycheck in 2012 under three scenarios: 1) Congress had not extended the payroll tax cut beyond December 31; 2) Congress allows the two month extension to expire as scheduled after February 29; and 3) Congress further extends the tax cut for all of 2012.  Check out the calculator.