Lawmakers See ‘Fiscal Cliff’ Deal As Elusive
Lawmakers say it’ll be time to get back to work when they and President Barack Obama return to Washington on Thursday following the Christmas holiday.
Time is running out to avert the fiscal cliff of tax increases and domestic program cuts in January, and some members of Congress are growing more skeptical that a budget agreement can be reached.
Republican Sen. Kay Bailey Hutchison says she expects “it is going to be a patch because in four days we can’t solve everything.”
Don’t be fooled by January pay — higher taxes loom
Workers probably won’t feel the full brunt of next year’s tax increases in their January paychecks.
No matter what Congress does to address the year-end fiscal cliff, it’s already too late for employers to accurately withhold income taxes from January paychecks.
But Social Security payroll taxes are set to increase on Jan. 1, so workers should immediately feel the squeeze of a 2 percent cut in their take-home pay.
(Copyright 2012 The Associated Press. All Rights Reserved)