One result of the heavily publicized failure of the Congressional budget reduction supercommittee could be a smaller paycheck for every working American.
One issue that was on the table as the group gave up on its efforts to reach a budget compromise was the extension of a payroll tax cut which was passed last year and is scheduled to end next year without action, according to Fox News.
President Barack Obama has urged Congress to act quickly in regard to the cut in order to avoid a tax increase that will affect all Americans.
“If we don’t act, taxes will go up for every single American, starting next year. And I’m not about to let that happen,” Obama said Monday.
The White House says reinstating the payroll tax cut is top priority because a middle-class family making $50,000 a year will see its taxes rise by $1,000 if the payroll tax cuts are not extended.
Without a deficit-cutting deal, though, it remains unclear how the President’s Administration would pay for an extension of the cuts, which would eat away at the Social Security coffers. White House Press Secretary Jay Carney said Monday that the money to finance the cuts should come from “asking millionaires and billionaires to pay a little bit extra.”