Payroll Tax Cuts: In Numbers
Less than a month after President Obama signed the tax cut compromise, millions of American workers are already seeing the impact show up in their paychecks from the payroll tax cut – here are some numbers on just that cut alone:
- $695: Average expected benefit per worker.
- $110 Billion: Total tax relief expected to go to working Americans.
- 159 Million: Working Americans expected to receive larger paychecks this year than they would otherwise.
To get a sense of how this will affect individual working people, the Treasury Department also put together a few hypothetical examples:
- $1,362: The amount a married couple living in Detroit, Michigan – an automotive mechanic earning $38,300 and a preschool teacher earning $29,800 – would receive from the payroll tax cut.
- $1,050: The amount another married couple, say this one lives in Wilmington, Ohio, would get if one of them earns $28,000 as a delivery truck driver earning and the other earns $24,500 as a nursing aide.
- $490: The amount a single mother in Florida working as a hairdresser earning $24,500 would get.
That money is already starting to show up in a lot of people’s paychecks just like them – not only can it help them make ends meet as the economy continues to recover, but as they spend it on things they need that will pump fuel directly into America’s larger economic engine.