December 3, 2016

The Payroll Tax Cut: Are We Really Still Talking About This?

Like most Americans, when you woke up on Saturday, you believed that we had a payroll tax cut for the next two months.  It was done. 

Now, like me, you may have felt that it was wrong that they only passed it for two months.  You may have even wondered how businesses were going to figure out this complex mess that Congress put us in.  Either way, though, you were relieved to know that you didn’t have to hear the fighting over Christmas this year. 

Oops.  Sorry but that’s not the case. 

Upon waking up on Monday, you find that they are going back at it.  The House Republicans refuse to leave town until we get a one-year extention.  They demand this for the same reasons we felt frusterated last Saturday.  Two months just doesn’t  make sense.  The problem is that the Senate went home and they aren’t coming back until Jan 23. 

So where does that leave us now?

Well, today the House is going to attempt to call back the Senate and create what is called the House – Senate negotiating panel, also called the Conference Committee.  This may cause a problem because Harry Reid, the current leader of the Democrat-controlled Senate, says he refuses to negotiate until the House passes the short-term version.

It seems that the American people and American businesses are going to be continually held hostage by the unknown and unforeseen.  As both sides attempt to position themselves as the saviors to the middle class, the only result that seems for sure is that they continue to change the rules when dealing with our checkbook and our paychecks. 

At this point, I understand why we want and need a year extenstion — but I truly wonder at what cost? Is it any wonder that Congress has a dismal approval rating?

Anna Domzalski is a staff writer for the Financial Bin. Anna will soon begin her role as Dean of Financial Bin University and will conduct online budgeting classes beginning in February 2012. She can be reached via email at Anna@FinancialBin.com.