Payroll tax cut: $2.2 billion in MN
- Blog Post by: Kara McGuire
- November 30, 2011 - 12:24 PM
A new report from the Office of Tax Policy found the 2011 payroll tax cut put $2.2 billion in the pockets of 3.1 million Minnesotans.
Families making $50,000 per year saw about $1,000 extra in their paychecks.
Nationally, the payroll tax cut part of the stimulus bill of 2010 meant a tax cut for 159 million workers totaling $109 billion.
The idea behind the tax cut, which expires at the end of the year, is to stimulate the economy by putting a little more cash in people's wallets.
I saved an extra 2 percent more in my 401(k). Sorry, fellow Americans.
What did you do with your tax cut? Did you even notice it?
President Obama is proposing an extension and increase of a payroll tax cut going into 2012. According to the Treasury report, cutting the payroll tax to 3.1 percent in 2012 would amount to $178.8 billion in the pockets of 161.2 million Americans. The family making $50,000 would see an additional $550 in their paychecks over what they saw this year.
In Minnesota, 3.2 million residents would see $3.7 billion.
According to the Wall Street Journal, Republican leaders are cool with the extension of the 2011 4.2 percent payroll-tax cut but not lowering it to 3.1 percent, half of the 6.2 percent standard payroll tax.
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