Detroit Lakes Tribune – With property taxes going up, medical insurance not getting any cheaper and incomes largely stagnant, middle class workers in Minnesota are staggering under a heavy load.
The straw that may break their back is the stalemate in Congress over continuing the payroll tax cut for another year.
How important is it to workers in Becker County? The median family income here is about $44,600, and if the existing payroll-tax cut is allowed to expire at the end of the month, it will cost that family about $900, or $75 a month.
Democrats want to extend the payroll-tax cut and even expand it: President Obama has proposed a deeper cut to the payroll tax that would give that median income Becker County family about $1,380, or $115 a month, next year.
To prevent harm to the Social Security trust fund, he would pay for it with a wealth surcharge on millionaires, making it pretty much DOA with Congressional Republicans.
According to the Wall Street Journal, The Republican leadership wants to find a way to extend the payroll-tax cut (and extend unemployment insurance) but is meeting with resistance from their rank-and file — which unexpectedly rejected a House bill that would have made up the costs by freezing federal worker pay and imposing personnel cuts.