Payroll Tax Cut Directly Impacts PHCC Members - by Gerry Kennedy, EVP, PHCC National

·         Though both political parties want to extend the payroll tax cut, the debate in Congress and the Administration is more around how to pay for it (offsets in the budget).  If Congress fails to extend the cut, it will expire on December 31^st of this year and the payroll tax cut will return to 6.2 percent from the temporary 4.2 percent rate.  There is also talk on Capitol Hill about reducing the rate to 3.1 percent.  Democratic leaders want to pay for an extension by raising taxes on millionaires while Republican leaders have said they would consider extending a freeze on federal salaries to cover the cost.  Stay tuned for further developments!