Failure of Payroll Tax Expansion Could Lead to $1,000 Increase to Illinois Families

Failure by Congressional Republicans to extend the payroll tax cut by the end of the year could force a $1,000 tax increase on 160 million middle income Americans, including 6.5 million families in Illinois. The two-percent tax cut was created in December of 2010, and would expire at the end of the year without Congressional action.
The tax cut provides an estimated $108.6 billion in tax relief to roughly 159 million workers. Economists estimate nearly one-million American jobs could be lost, and another recession could be triggered.
The loss of the tax cut would lead to a reduction in GDP of $128 billion according to the Economic Policy Institute. The non-partisan Congressional Budget Office found that extending the payroll tax cut is more cost effective to promote economic growth and employment.  http://goo.gl/jfqqW