Tax Increase Expected Despite Who Wins Election

Neither candidate is looking to extend the temporary reduction

Come January, 163 million workers can expect a big tax increase regardless of who wins the election. Why? Because a temporary reduction (in Social Security payroll taxes) is set to expire at the end of the year and neither presidential candidate has proposed an extension. The tax increase will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500. Republicans doubt it has been effective, as Sen. Orrin of Utah said, "The continued extension of a temporary payroll tax holiday has serious long-term implications for Social Security and, frankly, it's not even clear that it has helped to boost our ailing economy." And Democratic Rep. Richard Neal of Massachusetts said he thinks there is evidence that the tax cut helped the economy. But, he added, "I'm not sure that it met expectations." (MSNBC)

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