Regardless of whether Obama or Romney gets elected, there’s a tax increase that is due in January that is going to affect the lives of almost 163 million workers in the United States.
In describing how Congress views the temporary Social Security payroll tax cuts, Orrin Hatch, a Republican on the Senate Finance, said, “The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire. 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.”
What this means is that neither of the parties want to renew these tax cuts and that includes both Romney and Obama as well who haven’t proposed an extension either. The reason for this is because politicians from both of the Republican and Democratic Party ask whether these cuts have done anything if at all to stimulate the economy.
Another reason why both parties are hesitant to renew this tax cut is because it seems to affect the revenue that is responsible for funding Social Security and could affect the lives of senior citizens.
Yet this issue of is not being discussed because Congress has to first deal with the matter of extending the Bush-era tax cuts that are much larger and which also, like the payroll tax cuts, expire at the end of the year.
While some speculate that the payroll tax cuts might also be discussed along with Bush-era tax cuts, lawmakers doubt that this will be a possibility.