Payroll Tax Cut Added $1000 to Household Incomes
WASHINGTON – The 2% payroll tax cut put about $1,000 into the pocket of each American family this year, the U.S. Congress Joint Economic Committee reported Tuesday.
In Ohio, it meant an additional $978 in take-home pay above the $48,875 median household wage and salary income reported for 2011. In Pennsylvania, the cut added $1,059 to the $52,948 median income in 2011.
A fact sheet issued by the committee, which is chaired by U.S. Sen. Robert Casey Jr., D-Pa., also reported that the additional jobs generated by the tax cut resulted in up to an additional $3 billion to the Social Security trust fund.
“The payroll tax cut was a significant and direct boost to the economy in 2012,” Casey said. “This new analysis shows the far-reaching impact that the tax cut had on moving the economy forward, and Congress must work together to keep the momentum going in 2013 while responsibly dealing with the deficit.”
The report also notes that 122 million households received additional take-home pay, and the tax cut boosted consumer spending, was responsible for a half a percentage point of economic growth nationally, and saved or created 400,000 jobs.
Published by The Business Journal, Youngstown, Ohio.
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