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Posts Tagged ‘national debt’

Social Security Payroll Tax Cut Could Save You Up to $2k

Monday, November 28th, 2011

Our national debt just passed $15 trillion – that is, $15,000,000,000,000. The Congressional Super Committee tasked with figuring out how to bring that number down was due to come to an agreement by Thanksgiving, but leading up to that deadline, it did not appear that the Super Committee had any answer. The Super Committee had been meeting since August in the wake of the near failure for Republicans and Democrats to reach a deal to pass the budget.

For the unemployed and those receiving Social Security benefits, the Super Committee faced two options: extending payroll tax cuts and unemployment benefits or letting these things expire. Many economists have been arguing for the extension of the tax cuts and unemployment benefits, but with those, the federal government would have to come up with another $160 billion, not an easy task given the budget crises nearly every government agency already faces.

The alternative is letting payroll tax cuts and unemployment benefits expire. The payroll tax cut funds Social Security benefits, so without that money coming in, the government has to fund Social Security benefits from other incoming money. The cuts give Americans an extra $1,000 to $2,000 a year, which goes a long way these days. The unemployment benefits have been providing people with about $300 a week.

The fear is that without these tax breaks and unemployment benefits, the lingering economy could grow even worse. Economists have found that most of the extra money goes back into the economy, as those facing tough times use the extra money in their communities, bolstering local business.

The payroll tax cut would reduce Social Security taxes on your wages from 6.2 percent to 3.1 percent. How big of an impact would that extra money have on your financial situation?

Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys

Cantor Disagrees with Reid Over Social Security Comments

Friday, January 28th, 2011

House Majority Leader Eric Cantor, Representative Republican of Virginia, took jabs at Majority Leader Harry Reid, Senator Democrat of Nevada, over Reid’s Social Security comments. Reid made comments that the current Social Security program is not facing a financial crisis.

According to Cantor, Reid is a roadblock to addressing the deficit and taking real action to tackle issues with Social Security.

President Obama in his State of the Union address called for a bipartisan solution to strengthen Social Security for future generations. President Obama said reforms must come without benefit cuts. Cantor disagreed with the President on that point, stating that everything should be n the table.

Republicans have said they are willing to examine all options for entitlement programs such as Social Security, in an effort to address the nation’s climbing deficit. The Republicans are committed to leaving the retiree benefits unchanged, at least for those Americans older than 55.

Cantors remarks about Reid came after the Senator made comments on national TV that the problem in Social Security is overstated. Reid told NBC that people who dislike government perpetuate Social Security comments and that the program itself is fine. Senator Reid did include in his comments that Social Security could use improvements. Reid does not want to sacrifice Social Security in order to deal with the nation’s debt.