President Barack Obama’s plan to cut payroll taxes for a year would provide big savings for many workers, but makes Social Security advocates nervous that it could jeopardize the retirement program’s finances.
The plan is part of a package of tax cuts and extended unemployment benefits that Obama negotiated with Senate Republican leaders. It would cut workers’ share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages would get a $1,000 tax cut; those making $100,000 would get a $2,000 tax cut.
If this gets through congress and is implemented one thing I envision is businesses may decide to hire which will bring in additional revenue to the government.
As for social security, I believe that the concerns for what will happen to the fund is valid.
I recently just received my statement from the government telling me my benefits will not go up. Of course that will not stop Obama from funding other nations with U.S. money that the tax payers will have to pay.