Candidates mum on ’13 tax increase for 163 million workers
by Stephen Ohlemacher
Associated Press Writer
October 22, 2012 12:45 AM | 701 views | 0 0 comments | 6 6 recommendations | email to a friend | print
President Barack Obama, right, and Republican presidential candidate and former Massachusetts Gov. Mitt Romney exchange views during the second presidential debate on Thursday at Hofstra University in Hempstead, N.Y. Obama isn’t talking about it and neither is Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.<br>The Associated Press
President Barack Obama, right, and Republican presidential candidate and former Massachusetts Gov. Mitt Romney exchange views during the second presidential debate on Thursday at Hofstra University in Hempstead, N.Y. Obama isn’t talking about it and neither is Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.
The Associated Press
slideshow
WASHINGTON — President Barack Obama isn’t talking about it and neither is Mitt Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.

A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn’t get through Congress anyway, with lawmakers in both parties down on the idea.

Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.

Why are so many politicians sour on continuing the payroll tax break?

Republicans question whether reducing the tax two years ago has done much to stimulate the sluggish economy. Politicians from both parties say they are concerned that it threatens the independent revenue stream that funds Social Security.

They are backed by powerful advocates for seniors, including AARP, who adamantly oppose any extension.

“The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire,” said Sen. Orrin of Utah, the top Republican on the Senate Finance Committee. “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.”

The question of renewing the payroll tax cut has been overshadowed by the expiration of a much bigger package of tax cuts first enacted under President George W. Bush. The Bush-era tax cuts also expire at the end of the year, and Congress is expected to try to address them after the election, in a lame-duck session.
Comments
(0)
Comments-icon Post a Comment
No Comments Yet
*We welcome your comments on the stories and issues of the day and seek to provide a forum for the community to voice opinions. All comments are subject to moderator approval before being made visible on the website but are not edited. The use of profanity, obscene and vulgar language, hate speech, and racial slurs is strictly prohibited. Advertisements, promotions, and spam will also be rejected. Please read our terms of service for full guides