After much debate and political wrangling, Congress voted to extend a 2% Social Security payroll tax cut and to renew long term unemployment benefits for the rest of 2012. The tax cut effectively reduces the amount of wages withheld by your employer for payment/contribution to social security resulting in higher net income to you. It has been reported this tax cut results in an average $45.00 more in disposable income per week for an average middle class family.
Both provisions had been set to expire in two weeks, on February 29th, after having been extended for only two months in December 2011. President Obama is expected to sign the bill into law in the next few days.
Dan A. Penning