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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Actually the tax cut brought more money into the treasury even though people paid a lower rate and there are a lot of people who are not paying taxes due to the tax cuts. Jobs also increased untill the housing bubble. If the tax cuts are not extended some people are in for a big surprise. People who now get an earned income tax credit where they get money from the government may find themselves paying $1500 a year.
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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