USA Today
10/21/2012
WASHINGTON (AP) — President Barack Obama isn’t talking about it and neither is Mitt Romney. But come January, 163 million workers can expect to feel the pinch of a big tax increase regardless of who wins the election.
A temporary reduction in Social Security payroll taxes expires at the end of the year and hardly anyone in Washington is pushing to extend it. Neither Obama nor Romney has proposed an extension, and it probably wouldn’t get through Congress anyway, with lawmakers in both parties down on the idea.
Even Republicans who have sworn off tax increases have little appetite to prevent one that will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500.
Before he was named as Romney’s running mate, Rep. Paul Ryan, R-Wis., disparaged the payroll tax cut, calling it “sugar-high economics” that wouldn’t promote long-term growth.
Social Security is funded by a 12.4% tax on wages up to $110,100, rising to $113,700 in 2013. Half is paid by employers and the other half is paid by workers. For 2011 and 2012, Congress and Obama cut the share paid by workers from 6.2% to 4.2%.
A worker making $50,000 saved $1,000 a year, or a little more than $19 a week. A worker making $100,000 saved $2,000 a year…
The article continues at USA Today.
Related: Medicaid and Medicare Enrollees Now Outnumber Full-Time Private Sector Workers
The combined number of people enrolled in Medicaid and Medicare–the government health-care programs for the poor, disabled and elderly–now exceeds the number of full-time private sector workers in the United States.
In 2011, according to the Centers for Medicare and Medicaid Services (CMS), there were 70.4 million people who enrolled in Medicaid for at least one month. There were also 48.849 million people enrolled in Medicare. That gave Medicaid and Medicare a gross combined enrollment of 119.249 million in 2011.
At the same time, according to the Bureau of Labor Statistics, 112,556,000 people worked full-time in the United States in 2011. Of these 112,556,000 full-time workers, 17,806,000 worked for government (at the federal, state or local level) and 94,750,000 worked for the private sector…