Payroll Experts Say Two Month Payroll Tax Holiday Extension Would Do More Harm Than Good

The Democrats/liberal media are sticking it to Republicans, saying that they gave Americans a holiday tax hike that could hurt the economy. But, in reality, a two month extension of a tax holiday with nebulous economic benefit would likely do more harm than good according to payroll experts:

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.”

ABC News obtained a copy of the letter, which can be read HERE. Isberg agreed that it would be fair to characterize his letter as saying that the two-month payroll tax holiday cannot be implemented properly.

Robbing two entitlement programs that are already insolvent to fund a temporary, feel-good tax holiday is bad policy.

Republicans need to be the adults in all this.

Rob Port is the editor of In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters.

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  • Kevin Flanagan

    It’s not a tax, it’s an insurance premium.

  • WOOF

    Gingrich, Rove and McCain say give it up, give in, roll over.
    Cantor says two months are too short , cause House R’s really want to pass a payroll tax holiday.
    An idea whose time has come.
    Merry Christmas.

  • borborygmi

    Republicans need to be the adults in all this.   Exactly by extending it a year instead.

  • mickey_moussaoui

    Im all for NOT extending the careers of ALL politicians

  • Neiman

    The GOP talks numbers, they talk policy and the Democrats win the debate because they talk impact on average voters. The GOP could do they same, preemtively and show how they are wanting to protect seniors and help ma and pa and the kiddies long term, but their accountant mentality won’t allow that. They are too dang obtuse!

    • realitybasedbob

      Old Pal, the reason gop doesn’t talk impact is because their policies impact negatively.

  • David at Engage America

    I know that extending the payroll tax cut will put money in the hands of people who need it, but it is important to realize that this payroll tax cut is just a political maneuver and that it will not solve our long-term consumer demand problem.

    The reason the payroll tax cut won’t be very effective is that it is not specifically targeted to those with the most need; higher income earners also receive the tax cut.    

    Extending the payroll tax cut might be the only politically viable option to spur consumer spending, but it doesn’t make it the most effective option.