If you are an Oklahoma salaried employee, and you have been for the last few years, you may have noticed that your paycheck was slightly heftier beginning in January 2011. That's when Congress and the Obama administration pushed through a payroll tax “holiday” that cut federal payroll taxes by two percent.
It may seem like a small amount—in fact, the savings only amount to about $20 per week for a person earning $50,000 a year—but according to National Public Radio (NPR), it has added $95 billion to the federal deficit.
The trouble is that the payroll tax holiday is set to expire in December 2012. Given that this is an election year, it's doubtful if anyone in either party will come out for or against the tax before the beginning of November. Even then, the tax cut may be allowed to expire quietly and without any fanfare, lest middle-class taxpayers object.
Has the tax cut worked as intended? Well, according to NPR, a spike in gasoline prices in the last two springs has eaten up a significant savings that otherwise might have been spent on consumer goods. Then again, without the cut, consumers would have had to dig deeper into their own pockets to fuel up their cars, putting a further drag on the economy.
Are you an Oklahoma business owner with questions about your payroll tax obligations, or changes in government regulations? Call the Oklahoma tax attorneys at Travis W. Watkins, PC today (800-721-7054) for a free consultation!