ECON300-Current Event #9
The current economy is facing several issues under the Obama administration. One of these is the talk of tax cuts and what is at stake. In his article on CNN Money, Charles Riley discusses what is currently going in Congress with regard to voting and debating on the current proposed tax cuts. The vote is in two weeks and congressional members have yet to come to an agreement. The three tax cuts up for debate are payroll tax cut, unemployment insurance and pay cut to Medicare physicians. All three of these involve a reduction in the amount of government aid. The payroll tax cut will involve lowering the social security tax on US workers income from 6.2% to 4.2% on the first $110,100 of income. This is would provide working Americans with more money in their pocket at the end of the year. The unemployment insurance cut would cut the length benefits are received by the unemployed. Finally, the Medicare cut could affect the income of Medicare providers by 27%.
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