A one-year extension of the employee-side payroll tax cut was passed in December of 2011. It's scheduled to lapse along with the other fiscal cliff policies in 2012. This is a particularly popular tax cut because it goes by and large...
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Just a failure of research here. The payroll tax-holiday is a net plus to Social Security. Yes, there is lower revenue from payroll taxes, but all of it is made-up by the general taxpayer. To the extent that the holiday creates jobs, 1.3 million according to the article, it is a plus. I thought that this article was going to deal with the absurd economic assumptions used by the Trustees. We are going into a fiscal cliff, and the Trustees are looking for an improving economy. The real interest rate assumptions haven't changed since before the financial crisis. Fixing the fiscal crisis will bring SS a lot of problems, but this article seems to have missed all of them.
The coming fiscal cliff's mix of tax hikes and spending cuts are projected to seriously hamper economic growth over the next two years, and Congressional leaders would be wise to negotiate fixes for the problems. One of the more popular potential fixes, however, is only going to hasten the coming entitlement crisis by worsening the finances of Social Security.
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