Payroll Tax Holiday?

[Bryan Hancock]

I keep hearing rumblings about a payroll tax holiday being put in place temporarily to stimulate the economy. This is one of the best programs I have heard about. Does anyone know if this idea has legs?

[Bill Walston]

Originally posted by Steve Babiak:

Unless the income tax is actually being "forgiven" (it will not have to be paid on April 15), then this could cause more trouble. People have more in their paycheck and they spend it, but then the income tax bill comes due and they don't have the money - it was spent rather than being sent to IRS via withholding.

Steve - The proposed "holiday" is on payroll tax, not income. If enacted, there will be no affect on taxes due on 15 April.