Payroll Tax Increases...Appears Likely

Just a note to all, the payroll tax rate is scheduled to increase from 4.2% to 6.2% at the end of this month.  This will affect ~160 million people unless the master minds in Washington can get their act together and figure something out.  There is an article on CNN.com, here is the link http://www.cnn.com/2012/02/07/politics/payroll-tax-cut/index.html?npt=NP1 that provides an update on where these master minds are in the process of extending the payroll tax cut until the end of the year.  It sounds like they are back at square one, that sounds familiar, and the democrats could be using it for leverage for this upcoming election to prove that when a bipartisan discussion occurs that an agreement doesn't actually happen.  Whether this is true or not, I don't know, but if it is, then that is pretty low and ridiculous.  There are ~160 million people out there, me being one of them, that could use the couple extra dollars a month that this payroll tax cut provides.

The truth is, most of us don't get special perks, which save them money, that these people in Washington get.  What a government, let's make ~160 million people struggle a little bit more for just a little bit longer so an election can be won.  Or let's just not act like professional and good standing citizens and make life just a little more difficult on Americans during a tough economic period.  It isn't a big deal.  Whether there is an election this year or not, the people in Washington said that they would fight for a strong recovery.  I guess taking money from the hard working American is always the best route to take because they can't make a decision to cut funds in another way.  Sometimes I wish they would just grow up and set priorities rather than submit to childish acts.  If this payroll tax increases, it is hard to see how that would help in any election except if you are the republican nominee, in this case, and now they have leverage.

At any rate, manage your budgets accordingly and prepare yourself for an increase in the payroll tax and expect a pay cut as well.  Hopefully this is just blah and something positive happens but if not, atleast you are prepared to manage this negative change.  Cheers to budgeting!