Every day I hear from West Virginians who tell me that in this economy, it’s a challenge to have any money left over at the end of each month. Utility bills, medicine, food, gas — all these expenses are going up.
That’s why I have been pushing so hard to win an agreement to maintain the payroll tax break — so that families aren’t suddenly hit with a tax increase on January 1st.
Thankfully, the House agreed this week to go along with a majority of Democrats and Republicans in the Senate and extend this provision for working Americans.
Because of this agreement, most workers will get to keep an average of $1,000 in their paychecks next year.
Why is it so important? And why did I work so hard to get it passed?
Because the payroll tax relief works immediately. Think about it. Truck drivers, home health aides, cashiers, teachers, machinists, electricians, plumbers, computer programmers, nurses and miners – nearly every single worker you know is saving money right now thanks to this relief.
And those families turn around and spend that money for groceries, paying a water bill, replacing their children’s shoes or maybe even taking their family to the movies.
That’s why experts from all over say that keeping this pay relief in place would be good for America’s economy. That spending creates jobs, which is a good thing.
The point is, it puts money into people’s wallets – helping them out and, just as important, injecting money back into the larger economy.
Consider this: the payroll relief helped 900,000 people in West Virginia this year. So, there is a very good chance that the relief helped you, a neighbor or a relative.
The tax relief meant that an additional $500 million in savings was directed back into the West Virginia economy, according to studies from tax policy groups.
To me, there was never any doubt that we all should endorse this relief and give people more of their own money.
Some people have tried to claim that this break would jeopardize Social Security. Not true. The Social Security Administration itself said that the payroll tax relief doesn’t take a dime from Social Security.
And, AARP agreed that Social Security is completely safe. Of course, anyone who knows me knows I’d never support anything that would hurt seniors.
Those are good questions and I am determined to address them in coming weeks. This compromise only extended the break for two months. I’m fighting for it to be extended for all of 2012 and won’t give up until it is.
I encourage you to contact my office if you have any questions about the payroll tax and what it means to you.