Payroll Taxcut Left Unresolved While Congress Packs Up For Holiday Recess
The efforts to save the tax breaks for workers seems to have been abandoned as no compromise was met to extend the tax cuts. Now, Washington is packing up and headed out for their holiday recess, leaving Americans wondering if their paychecks will be smaller this year.
The average increase in taxes will be from 4.2% to 6.2%. That averages out to just about $40 less per paycheck for those who get paid bi-weekly. These new (or original) rates will take effect as of the new year, January 1.
Long term unemployment benefits for about 3 million people are also set to expire, along with that doctors are expected to face an estimated 20% drop in Medicare payments.
The finger pointing is running rampant in Washington right now. Congress is blaming the senate while the senate is blaming congress. Republicans are blaming the democrats and vice versa. No one is willing to take the blame for not extending these services and cuts.
"The issue right now is this: The clock is ticking; time is running out," President Obama said in a statement at the White House after the vote. "And if the House Republicans refuse to vote for the Senate bill, or even allow it to come up for a vote, taxes will go up in 11 days."