What $40 means to other Americans
House Republicans are refusing to extend the payroll tax cut, which expires on December 31. If it does, taxes will go up for 160 million working Americans. Nearly everyone—from President Obama to Congressional Democrats to Republicans in the Senate—is committed to making sure that doesn’t happen, but a faction in the House is dragging their feet.
Ending the payroll tax cut will cost the typical family making $50,000 a year about $1,000 a year, which is a lot of money for struggling families. President Obama explained today:
Our failure to do this could have effects not just on families but on the economy as a whole. It’s not a game for the average family, who doesn’t have an extra 1,000 bucks to lose. It’s not a game for somebody who’s out there looking for work right now, and might lose his house if unemployment insurance doesn’t come through. It’s not a game for the millions of Americans who will take a hit when the entire economy grows more slowly because these proposals aren’t extended.
That $1,000 a year works out to about $40 a paycheck that families won’t have to spend or save. Although opponents of the payroll tax cut might say $40 isn’t much, we know that’s not the case. So we’re asking Americans to explain what that tax increase would look like in their house.
What does $40 mean to you? What will you and your family have to cut or go without if Congress refuses to pass the payroll tax cut?
Here are some of the stories we’ve collected so far. Tell us your own story here, or tweet @WhiteHouse with the hashtag #40dollars, to help us add to the list.
I can buy lunch from the cafeteria for almost a whole month for my twins, I can buy food, or pay for gas. I can save it for my daughter’s prescriptions deductibles. To some people $40 is nothing, but $40 is big money for us.
L.A., Hamden, Connecticut