Tax holiday ending helps in long run
Is your wallet feeling lighter these days?
By now, most Americans have noticed that a tax break to which they likely became accustomed during the last two years has vanished. The end result is less money in your paychecks.
Leaders in Washington, D.C., approved a payroll tax holiday two years ago, but that holiday expired Dec. 31.
Now, everyone who works is paying 2 percent more in taxes than they did last year.
It’s not a tax hike, in reality; it’s just the end of a tax break.
The fact is — like it or not — the tax holiday served its purpose, did its job and has now ended.
With the country still in the midst of rough economic times two years ago, passing the tax break was wise. It put more money in the hands of consumers, encouraging them to spend more and churn the economy.
Not everyone feels that the economic ship is smoothly sailing just yet, but experts agree things are beginning to look up.
It’s fair enough that the tax reprieve we all enjoyed now return to government coffers to fund Social Security — a service that benefits many in our community.
We aren’t fans of more taxes, but this wasn’t an additional tax.
It’s time now that consumers adjust to standing on their own two feet without that last 2-percent tax break, so we can really see how our economy will do.