At the end of last year, Congress hurried through a tax package.
One of the credits that was allowed to expire was the Making Work Pay tax credit. However, our representatives replaced the Making Work Pay tax credit with a reduction in the payroll tax paid by employees. This means that you should be seeing a paycheck that is a little bit bigger.
Our leaders, of course, want you to go out and spend that money, pumping it back into the economy. The whole point of tax cuts is to encourage you to spend so that we can keep the economy, which relies a great deal on consumer spending, moving in a direction of positive growth. However tempting it might be to spend that extra money, though, it is a good idea to consider how that money can help you down the road.
[Read more…] about What Are You Doing with Your Payroll Tax Cut?
