Tax Policy Center

payroll tax cut

Federal Budget and Economy: TaxVox
Can somebody explain to me why the House agreed last week to restore 50+ tax subsidies without paying for them (and thus adding $42 billion to the deficit) and 10 minutes later approved a new tax subsidy that it insisted on paying for? It can’t be the merits of the recipients. By now, TaxVox
December 9, 2014Howard Gleckman
Campaigns, Proposals, and Reforms: TaxVox
With fiscal cliff talks seemingly stalled (at least today) , there has been growing talk that House Republicans would call President Obama’s bluff and simply pass the Middle-class Tax Cut Act approved by the Senate last summer. But for all the chatter, nobody has paid much attention to what is, and
December 14, 2012Howard Gleckman
Federal Budget and Economy: TaxVox
If a tax cut is scheduled to expire, but the focus of the debate is elsewhere, will people notice? Will the average family be surprised when their taxes rise by $1,000 or more next year, even if most of the rest of the 2001-2003 tax cuts are extended for all but the wealthiest Americans? That’s
November 30, 2012Elaine Maag
Federal Budget and Economy: TaxVox
The 2-percentage-point payroll tax cut extended by Congress in December and again last week will save workers a total of $114 billion this year, according to the Joint Committee on Taxation. Spread over nearly 160 million workers, that’s an average tax cut of $714. Yet the typical news report says
February 20, 2012Roberton C. Williams
Federal Budget and Economy: TaxVox
It looks like Congress is about to assume its default position: In the face of an intractable partisan dispute over how to pay for a government initiative, don’t. If Democrats won’t cut spending, and Republicans refuse to raise anybody’s taxes, there is always the solution they both can agree upon—
February 15, 2012Howard Gleckman
Individual Taxes: TaxVox
The least popular Congress in memory is back. I, personally, am thrilled. After a year in which lawmakers did almost nothing besides (barely) keeping the government running, this session promises hardly more. Tax policy will be at the center of much of the partisan squabbling, but it is hard to
January 17, 2012Howard Gleckman
Federal Budget and Economy: TaxVox
After much anguish, Congress finally extended this year’s payroll tax cut for two more months. The final bill passed in nearly empty chambers a couple of days before Christmas. But this version differed in an important way from the measure passed by the Senate just a few days earlier. The final
December 28, 2011Roberton C. Williams
Federal Budget and Economy: TaxVox
House Republicans are right about one thing at least: Extending this year’s payroll tax cut for two months is ridiculous. The trouble is they are largely to blame for the very policy they are criticizing. Congress got itself in this mess because a few dozen self-styled tea partiers have refused
December 20, 2011Howard Gleckman
Federal Budget and Economy: TaxVox
The fate of The Temporary Payroll Tax Cut Continuation Act of 2011 remains uncertain. But thanks to a carefully crafted technical change to the current payroll tax cut, the Senate version prevents a handful of very high wage earners from potentially enjoying a huge windfall from the two-month tax
December 19, 2011Roberton C. Williams
Individual Taxes: TaxVox
When Congress finally extends the payroll tax cut that is due to expire in a few weeks, it may also be taking another step down the road to tax reform—and perhaps even to big Social Security changes as well. Why? Because without fundamental reform, it will be devilishly hard for Congress to ever
December 8, 2011Howard Gleckman