The two-month payroll tax cut extension backed by Senate Democrats and President Obama won’t work, independent experts tell ABC News.
Officials from the policy-neutral National Payroll Reporting Consortium, Inc. have expressed concern to members of Congress that the two-month payroll tax holiday passed by the Senate and supported by President Obama cannot be implemented properly.
Pete Isberg, president of the NPRC today wrote to the key leaders of the relevant committees of the House and Senate, telling them that “insufficient lead time” to implement the complicated change mandated by the legislation means the two-month payroll tax holiday “could create substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees.”
The non-partisan organization represents payroll processing and services companies that together cover more than one-third of the entire private sector.
The outcome of the short extension, NPRC says, will be confusion. Some will see their tax cuts extended. Some will see less money in their paychecks. Some will only get adjustment notices later in the year. Confusion and chaos aren’t exactly what’s needed when Americans are already struggling to pay their bills.
House Republicans favor a plan that would extend the tax cuts for a full year rather than just two months. Their plan would also approve a pipeline project that analysts say would create an immediate 20,000 new jobs. The bill would also suspend a ban on incandescent light bulbs that would otherwise go into effect in January.


19. December 2011 at 4:47 pm
If any of us procrastinated like Congress has done, we would have been fired. All this time and they wait to the last minute while expecting that just a push of a button will implement this 2 month payroll tax cut. These Congressmen are out of touch with reality and their assistants who come up with these ideas are any better. Get out in the real world and see how life works, Congress.