Americans Will Feel Paycheck Pinch As Payroll Tax Break Ends In January

WASHINGTON (AP) — 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?

Read more: http://www.pennlive.com/midstate/index.ssf/2012/10/social_security_tax.html

Speaker Boehner Succumbs On Tax Deal

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WASHINGTON (Reuters) – House of Representatives Speaker John Boehner on Thursday bowed to pressure from both within and outside his party and agreed to a short-term deal to extend a payroll tax cut for 160 million Americans.

In what could be an end to a toxic stalemate, Boehner informed Senate Majority Leader Harry Reid that he will set a vote in the House on a Senate-passed two-month extension of the payroll tax cut, a Democratic leadership aide said.

Now comes the hard part – getting his often rebellious caucus to follow his lead. He is expected to brief members of his caucus later on Thursday, according to one lawmaker’s office.

Read more: http://www.mcall.com/news/local/sns-rt-us-usa-taxestre7b827k-20111209,0,557603.story