Get ready for your tax increase and pay cut in twenty-eight days…ho, ho ho!

3 Dec

While most of us are focused on the number of days until Christmas, politicians are focused on the number of days until Americans get a tax increase and doctors get a pay cut.

What the heck is he talking about?

Well, that 2% less you are paying for Social Security payroll taxes is set to expire at year end (which we all knew for the last twelve months), but that doesn’t stop some politicians from explaining the expiration of the tax holiday as a tax increase. Just imagine what they will say at the end of 2012 if the tax break is raised from 2% to 3.1% and extended to Jan 2013?

Just imagine what you will say when you look at your first pay stub in 2013. Oh what a tangled web we weave.  Better not use that extra cash for ongoing expenses because someday the expenses will still be going and the cash will be gone.

And about those doc’s pay, Congress has less than 27 days to figure out how to stop the 27% cut in Medicare’s physician payments scheduled to go into effect next year… again.

As I’ll conceived as this fee cut may be, and as obvious as it may be that temporary means temporary, these issues illustrate how politicians can’t deal with giving anyone less or taking away anything given even when Congress passed the laws that specify how the situations are to be handled.

And you really think all the parts of the Affordable Care Act will work as planned?

Tags: doc fix, Social security payroll tax, tax increase

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