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End of Payroll Tax Holiday Could Signal Economic Boost

End of Payroll Tax Holiday Could Signal Economic Boost

In 2010, Congress enacted the Payroll Tax Holiday, meant to help boost consumer spending by adding an average of $19 per paycheck over the past two years. The downside to the tax is that it places a dent in social security for aging baby-boomers, despite the intention of the outcome to be the opposite. The Obama Administration has allowed the tax to expire by the end of 2012, a move that has garnered bipartisan support from both sides of the political aisle. In allowing the tax to expire, the economy could see a substantial boost in revenue next year. However, payroll taxes will increase, thus, lowering the median pay in a person’s paycheck. Analysts, however, believe the change will go unnoticed by the American people.

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If you have any questions regarding the payroll tax or any other tax-related issues, contact Gonzalez & Arrambide, Inc. at 956-447-9009. Visit us at 415 S. International Blvd., Weslaco, TX 78596.

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