Payroll tax expires in January, could cost you $1,000 a year - WAFB 9 News Baton Rouge, Louisiana News, Weather, Sports

Payroll tax expires in January, could cost you $1,000 a year

BATON ROUGE, LA (WAFB) -

Millions of Americans could see some big changes to their paychecks come January. That is when a temporary reduction in the Social Security payroll tax expires.

President Obama pushed for this cut in 2010 as a way to let people keep more of their income hoping Americans would spend more money and help boost the economy. It could cost nearly 163 million American workers about $1,000 each year.

"It's probably going to make it a little harder to get my bills paid," said Robbie Sharp, who works in Baton Rouge. "I mean, I've been struggling with that as is. That'll just be a little less money for me to spend on myself."

Leaders on both sides of the political spectrum are against extending it further.

"It did deplete some of the finances in the Social Security trust fund. I saw it wasn't very stimulative because our economic growth has decreased over the last year," said Louisiana Representative Bill Cassidy (R).

While some workers say the end of this cut could put a tighter strap around their monthly budget, others believe it could help out the entire country in the long run since the money is used to fund social security.

"I think for me, it wouldn't be that big of difference as far as how much money I'm taking home with the cut. I think that it would help out social security more than it'd help me out honestly," said Arielle Hegwood, who works in Baton Rouge.

The temporary decrease has meant more money in most people's paychecks.  Unless congress votes to extend it, this will just return things to where they were before.  And it'll take effect January first.

Copyright 2012 WAFB. All rights reserved.

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