Should the Payroll Tax Cuts Be Extended?

A GOP plan to extend the payroll tax cut faces will add $100 billion to the deficit

February 14, 2012 RSS Feed Print

Washington D.C. is bracing for another congressional showdown, this one a sequel to December's payroll tax cut battle. The cuts were extended in late December but only for two months. The deduction, which saves the average American family an estimated $1,000 annually, is set to expire February 28. Monday House Republican leaders offered a plan to extend the cuts another 10 months, their plan adding $100 billion to the deficit. Though some Democrats are touting the plan as political victory, others wish to see the extension of unemployment benefits included in the legislation. Meanwhile, the plan also faces some GOP opposition, as government spending without offsets is something many Republicans, especially those of the Tea Party caucus, vehemently criticize.

[See a collection of political cartoons on the budget and deficit.]

In December, Debate Club tackled the issue of the payroll tax cut extension with Center for American Progress fellow Heather Boushey arguing, "Extending and expanding the payroll tax cut will directly help working families while boosting our economy overall." Republican Rep. David Schweikert opposed the extension, saying, "The simple fact is that this sort of temporary tax stimulus has repeatedly shown that without offsets, they only stimulate bigger federal deficits."

What do you think? Should the payroll tax cuts be extended? Take the poll and comment below.

Previously: Does Obama's Contraceptive Compromise Go Far Enough?

Tags:: Senate,; Congress,; tax deductions

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I have no problem with the payroll tax cut, but it should be paid for by raising the maximum salary subject to the tax. Congress is engineering a deficit insocial security and changing the perception to it being a retirement fund from its being a social insurance program

Brian Ressing of NY 4:10AM February 16, 2012

Unemployment numbers are comprised of those that are in the job market for the past 30 days. It does not include those that have not been in the job market in the last 30 days: people who have given up looking; those that have gone off unemployment because it has run out. One solution to unemployment is High Speed Universities check it out

robertjoneszr of CA 1:49AM February 15, 2012

Should the Payroll Tax Cuts Be Extended?

A GOP plan to extend the payroll tax cut faces will add $100 billion to the deficit