Another short-term payroll tax cut?

February 10, 2012

Groundhog Day was last week, but it's obviously Congress' favorite movie. Capitol Hill lawmakers just love doing the same thing over and over and over.

This time the payroll tax cut conference committee has stalled in a repeat of the battle the House and Senate fought just before Christmas.

After a game of political chicken, Congress agreed to keep the 2-percentage-point payroll-tax cut, the Medicare reimbursement fix and unemployment benefits in place through Feb. 29.

The hope was that after the holdiay break, conferees would be able to come up with mutually acceptable ways to raise the estimated $160 billion needed to keep the short-term provisons in place through all of 2012.

Things aren't working out as hoped.

Both sides are offering essentially the same proposals that failed two months ago. Democrats have resurrected a proposed surtax on millionaires. Republicans still want to freeze the pay of federal workers and limit Medicare subsidies for higher-income seniors.

And now there's talk by some in Congress that we might see another short-term extension of the measure set to expire in a couple of weeks.

It's not what either side wants, but given the possible political fallout, neither party is ruling out another temporary extension if no deal is reached.

Congressional staffers reportedly will work through the weekend to try to avoid short-term payroll tax déjà vu. Good luck with that.

Meanwhile, you can see how much time is left in the current payroll tax cut via the countdown clock in the left column of the ol' blog (just under Uncle Sam's unsmiling mug). It will keep ticking away until Congress enacts a full-year measure or gives up entirely.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
6 tax moves to consider this June

June 3, 2026

Definitely take a break this June. But taxes don’t take vacations. So, you also should…

Read More
Tax Season 2026 Continues!

We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 26, millions who were expecting refunds filed immediately. Most of us got our returns to the Internal Revenue Service by April 15. But plenty of taxpayers also got extensions. They are looking at an Oct. 15 filing deadline.

Those procrastinating filers aren’t a problem. In fact, the IRS appreciates taxpayers who take time to fill out their 1040 forms correctly. It also is grateful that tax submissions are spread out a bit, especially now that the IRS is a leaner agency. Processing returns is easier when they arrive throughout the year instead of in massive bunches.

But enough about Uncle Sam’s tax collection issues. The focus now is on all y’all who filed for extensions, giving you another six months to complete your return. Since your new mid-October due date will be here before you know it, let’s get started now on meeting it.

The ol’ blog is here to help you finish up your extended Form 1040. You can start with January’s tax tips page, which has links to the rest of the year’s tips by-month collections. You also can peruse various tax categories for more tailored advice by clicking on the More Tax Posts drop-down menu at the top of this (and every) page.

And to make sure you don’t miss your new filing deadline, the count-down clock below will let you know just how much time you to file by Oct. 15. At the latest.e. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments