What will happen when 2012 US payroll legislation expires?
June 04, 2012
Unless Congress elects to extend U.S. payroll tax legislation
that increased paychecks for workers through the end of the year, take-home pay will decrease beginning in January 2013.
The U.S. payroll legislation
went into effect last year and was extended through the end of 2012 in February, following the 11th-hour passage of the two-month Temporary Payroll Tax Cut Continuation Act of 2011 just eight days before the expiration date of last year's provisions. It set the payroll tax rate at 4.2 percent - a 2 percent decrease from the original 6.2 percent.CNNMoney
recently put the effect the cut has had on workers into perspective.
"A person making $50,000 has enjoyed roughly $83 extra a month, while someone making $110,100 has been taking home an extra $183.50 a month," the news source explained.
If the scheduled expiration comes to pass, federal revenue will increase by an estimated $95 billion in 2013, according to projections from the Congressional Budget Office.