Press Releases | Budget Taxes and Public Investment

News from EPI Inaction on payroll tax cut would decrease average family’s income

For Immediate Release: Thursday, December 1, 2011
Contact:
Phoebe Silag or Karen Conner, news@epi.org 202-775-8810

 

Inaction on payroll tax cut would decrease average family’s income

 

In the next few days, the Senate is expected to take up an extension and expansion of the one-year payroll tax cut enacted last December. Today’s Snapshot shows that if Congress does not continue the payroll tax cut or replace it with a comparably sized temporary tax rebate, declining consumption and related economic activity will decrease employment by almost one million jobs and could reduce the average family’s disposable income by $920 next year, relative to current policy.