Muscatine

Yet keeping the tax cut is not without cost.  The holiday enacted one year ago cut Social Security payroll taxes from 6.2 to 4.2 percent, meaning there is less money being collected to fund the already endangered Social Security system.

I thought we were told only republicans would do something like this....and yet this is obamas baby..........

http://www.usnews.com/news/articles/2011/11/28/payroll-tax-cut-extension-could-bring-economic-benefits

I still think congress has to enact and pass this first. I doubt anyone paying into the system is complaining though. Those very wealthy earners out there don't pay into it . But we do.

There is an annual limit called the "contribution and benefit base". For the last three years it was $106,800.00. For 2012, that base will be $110,100.00. This means you are taxed for SS until you hit that income level during your income year, then it is no longer collected as you are maxed-out. It is 6.2% paid by the employee and 6.2% paid by the employer.

The same annual limit also applies when those earnings are used in a benefit computation. I'm not sure that the "very wealthy earners" do not pay into that, to those limits when each year starts. Sure; they don't "need" their money they paid in; but what happens to it if the wealthy just leave it there?  Likewise, members of Congress have to pay in to SS too (unless they chose the civil service retirement back in 1984 instead), and need 5 years in service to be fully vested.

Obama and the Democrats are proposing a 3.25% tax surcharge on incomes over $1,000,000 to replace the loss.   We'll see if Republicans will go along with it.  I'm betting against it.