If your paycheck is suddenly smaller in January, don’t even think about blaming Obama.
A CNN report explains a portion of the president’s jobs plan, which Senate Republicans voted against:
“The largest measure in the (jobs) package is the payroll tax cut, which comes at a projected cost of $265 billion. Employees normally pay 6.2% on their first $106,800 of wages into Social Security, but they are now paying only 4.2%. That break is set to expire at the end of December. Obama wants to cut the tax in half, to 3.1%.”
So, let’s look at how this would affect a worker with an annual income of $80,000:
* If the current cuts EXPIRE at the end of the year, this payroll tax will be $4,960.
* If the tax cuts REMAIN THE SAME, this payroll tax will be $3,360.
* If this portion of Obama’s jobs bill PASSES, this payroll tax will be $2,480.
* If this measure in Obama’s jobs plan FAILS, $2,480 in payroll savings will be lost to the worker in the coming year.
* If you suddenly find your paycheck is smaller in 2012, be sure to write your Republican representatives in Washington a “thank you” note.