Barring some sort of last-minute dramatic filibuster or devastating Martian attack, Congress has agreed to extend the 2% payroll tax reduction, which was set to expire on February 28, through the end of 2012. To pay for the $94 billion dollar reduction in tax revenue, Congress plans to …do nothing. Seems about right.
Instead, we’ll just tack another $100 billion on our already bloated national debt, and let the next generation deal with it. Seems like sound fiscal policy to me.
Debt issues aside, U.S. employees stand to benefit to the tune of an extra $2,200 (maximum) in their paychecks in 2012, which in all likelihood, will be spent on 94 billion iTunes downloads. Somewhere, Steve Jobs is smiling.