Should Congress Extend the Payroll Tax Holiday? [POLL]
According to Politico, the economy could be facing a $125 billion dollar hit. That's if Congress decides not to extend the payroll tax cut for next year. If Congress doesn't extend the tax cut, 160 million Americans will see a tax increase. According to Politico, Congress doesn't even have this on their radar.
Lawmakers on both sides of the aisle argue that the tax holiday — which expires after Dec. 31 — was always meant to be temporary, and seemingly everybody hates that it routes money away from the Social Security trust fund. Ending the 2 percent reprieve in the payroll tax would mean a tax increase for 160 million Americans.
“It never should have been enacted in the first place,” Sen. Tom Harkin (D-Iowa) said. “It was a terrible mistake. But it was done and it should not be extended. It’s got to end this year. Period. No more.”
“I think there’s growing bipartisan consensus that we can’t continue, as a nation, to keep diverting such a critical revenue stream of Social Security,” added Rep. Kevin Brady (R-Texas), a senior member of the tax-writing Ways and Means Committee.
What do you think Congress should do? Should the payroll tax cut be extended or should lawmakers end it? Let us know in today's LFN Poll of the Day.