Poof there goes $120 BILLION from the economy

With the markets spinning out of control, the government not knowing what to do and panic hitting the streets, here’s the next major issue that is about to hit the economy.

One of the measures taken by Congress last year was to temporarily reduce payroll taxes that added back an average of $1000 to employees take home pay.  This $1000 was supposed to be put back into the economy through consumer spending.  The only problem is that the rollback is slated to end this year, and if it isn’t extended we might as well pour fuel on our economic fire.

“Economists are growing more worried that Congress will not extend this year’s payroll-tax cut past Dec. 31, pulling up to $120 billion out of consumers’ pockets and cutting into already tepid forecasts for household spending in the first half of 2012.”

Here is an article showing in more detail the financial impact if Congress doesn’t extend this cut.

About Anthony Candella

Anthony is the founder and Directing Attorney of YourCreditAttorney.com and has been helping consumers just like you understand and improve your credit and financial situation since 2003.

  • SMC514

    How can they get away with this?! >.<