Outlook still uncertain for US payroll tax
After a long struggle, members of Congress finally agreed on a two-month extension of the current payroll tax extension just eight days before the existing legislation was set to expire.
The agreement prolonged a 2 percent payroll tax cut and expanded benefits for unemployed citizens, in addition to heading off a reduction in Medicare payments to doctors. This bought lawmakers time to negotiate a yearlong agreement.
However, some experts and members of the legislature have expressed concern about the effect the extension will have on Social Security, The Washington Post reports.
Robert Reischauer, president of the Urban Institute, acknowledged that an extension makes sense in the context of the high unemployment rate. However, he also noted that it "could, if it continues for a substantial period of time, undermine one of the foundational arguments that makes the Social Security program inviolate," as quoted by the news source.
The nation's unemployment rate fell to 8.5 percent last month - the lowest level in nearly three years - according to recently released figures from the Department of Labor.
The agreement prolonged a 2 percent payroll tax cut and expanded benefits for unemployed citizens, in addition to heading off a reduction in Medicare payments to doctors. This bought lawmakers time to negotiate a yearlong agreement.
However, some experts and members of the legislature have expressed concern about the effect the extension will have on Social Security, The Washington Post reports.
Robert Reischauer, president of the Urban Institute, acknowledged that an extension makes sense in the context of the high unemployment rate. However, he also noted that it "could, if it continues for a substantial period of time, undermine one of the foundational arguments that makes the Social Security program inviolate," as quoted by the news source.
The nation's unemployment rate fell to 8.5 percent last month - the lowest level in nearly three years - according to recently released figures from the Department of Labor.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.