Social Security tax cuts expire with fiscal cliff deal, affect paychecks for 80 percent of working Americans
The two-year Social Security tax cut has come to an end, but Taylor County Democratic Chair Ed Conely said that is not a bad thing; We need it.
"Nobody expected those cuts to be permanent. We have to fund Social Security," said Conely.
The tax will be rising from 4.2 percent back up to 6.2 percent.
That will cost someone making $50,000 about $1,000 dollars per year.
Joy Ellinger, Taylor County Republican Chair, does not agree with the hike.
"I would like to see the payroll tax reinstated. What kinda of luck we'll have, i don't know. But i encourage everyone to call their Congressman and let them know what you think," said Ellinger.
She has proposed a reduction in government spending to remedy the country's debt problem.
"The government has a spending problem. So we're going to have to reduce that," said Ellinger.
However, Conely said that would do more harm than good.
"Economics 101 will tell you that if you drastically cut government spending, you'll throw the entire economy off kilter. And recession results," said Conely.
He said even though the number on each paycheck may be a little lower, it is part of what needs to be done to fix the country's financial issues.
"Nobody wants to see less money in their paychecks. But we have a government, we have a deficit that needs to be addressed. And you can't address it by continuing tax cuts. Somebody has to pay the piper," said Conely.
The reinstated social security tax will cause taxes to rise for about 80 percent of working Americans.
Economists believe the higher Social Security tax is expected to slow economic growth .06 of a percentage point in 2013.
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