In 2010, Congress enacted the Payroll Tax Holiday, meant to help boost consumer spending by adding an average of $19 per paycheck over the past two years. The downside to the tax is that it places a dent in social security for aging baby-boomers, despite the intention of the outcome to be the opposite. The Obama Administration has allowed the tax to expire by the end of 2012, a move that has garnered bipartisan support from both sides of the political aisle. In allowing the tax to expire, the economy could see a substantial boost in revenue next year. However, payroll taxes will increase, thus, lowering the median pay in a person’s paycheck. Analysts, however, believe the change will go unnoticed by the American people.
If you have any questions regarding the payroll tax or any other tax-related issues, contact Gonzalez & Arrambide, Inc. at 956-447-9009. Visit us at 415 S. International Blvd., Weslaco, TX 78596.