Snap-O Fact #63
President Obama Lead A Dramatic Victory By Avoiding A Middle Class Tax Increase!
Under President Obama’s solid leadership, Congress Approved a 2 Month Payroll Tax Cut Extension. The President immediately signed the bill into Law. The package was approved on Friday, 12/23/2011. This was not only a major victory for the middle class, it was a major political victory for President Barack Obama and a setback for Republicans in the House of Representatives. The final bill will assure that the average employee will avoid paying about $1,000 a year more in Social Security taxes.
The victory is temporary. The tax rate for employees will remain at the 2011 level of 4.2 percent for only two months. If no further action is taken before Feb. 29, it will rise to 6.2 percent which will mean an $80 a month bite out of an average worker’s paycheck. The payroll tax funds the Social Security retirement pension system. If it had been allowed to rise, the increase would have hit the wallets of 160 million working Americans.