'Tis the season: Americans will pay $717 more if 'Payroll Tax Holiday' ends
This year, there is another holiday people won't want to see the end of.
The end of a temporary payroll tax cut may mean growing deficits and an underfunded Social Security system.
These cuts gave the average American $717 dollars more in 2012, according to Face the Facts USA. While the cuts were a timely benefit to taxpayers, they added $101 billion to the nation’s deficit just in this year.
The “payroll tax holiday” was started and 2011 and renewed again this year, according to CNBC. The revenue was used to pay for services like Social Security and Medicare.
Politicians are beginning to realize the impact of losing revenue from payroll taxes.
"The payroll tax holiday was intended to be temporary and there is strong bipartisan support to let that tax provision expire," Sen. Orrin Hatch of Utah, told CNBC. "The continued extension of a temporary payroll tax holiday has serious long-term implications for Social Security and, frankly, it's not even clear that it has helped to boost our ailing economy."