Congress is not likely to extend the payroll tax deduction began in 2010 when it expires at the end of this year. FICA taxes are workers’ contributions to the Social Security trust fund.
The purpose of the reduction of the FICA tax rate from 6.2 % to 4.2% was to stimulate the economy by putting more money in workers’ pockets. While the reduction was extended through this year, neither political party is supporting another extension for next year.
Payroll taxes will then likely increase beginning January 1, 2013 regardless of who wins the November elections and who holds the majority in both houses of Congress. While the tax cut was considered temporary, middle and working class families will see a drop in their take-home pay and both these families and the US economy is likely to feel the impact. According to the New York Times, “independent economists say that the economy could shoulder the payroll tax increase without undue harm.”
It is critical for you to talk with our office so that you have an experienced lawyer who keeps current with the Social Security programs and works hard to make sure you get the benefits you deserve. Call us at 303-780-7329or click HERE to arrange for your FREE CONSULTATION. We help disabled individuals all over the United States obtain the benefits they deserve.