The budget compromise bill that is meant to allow the U.S. government to avoid higher tax rates and austere budget cuts has tax rates as its central issue, with discussions about more spending cuts, and the federal debt limit, put off until the coming weeks.
In covering this debate, much has been made of income tax rates and where exactly they should be raised. But one fact has gotten far less notice. Starting today, payroll taxes are going up two percentage points for nearly all American workers. NPR's John Ydstie joins us to talk about it. And John, this means lower take-home pay for a lot of workers starting very soon.
Originally published on Tue January 1, 2013 10:39 am
A compromise deal to stop broad spending cuts and tax increases is headed to the House of Representatives, after receiving strong support in the Senate. Rep. Tom Cole, R-Okla., talks with Steve Inskeep about a possible House vote on the "fiscal cliff" deal.
Cole, the House deputy majority whip who also serves on the Appropriations Committee, says he expects the House to approve the Senate bill, calling it "a pretty big win."