WASHINGTON D.C. – Today, the U.S. Congress Joint Economic Committee released a fact sheet detailing the positive effect that the payroll tax cut had on the economy in 2012. The tax cut put about $1000 into the pocket of the average American family this year, which increased consumer spending, supported job growth, and bolstered the Social Security Trust Fund by increasing the number of employed Americans paying in to the system.
“The payroll tax cut was a significant and direct boost to the economy in 2012,” said JEC Chairman Bob Casey. “This new analysis shows the far-reaching impact that the tax cut had on moving the economy forward, and Congress must work together to keep the momentum going in 2013 while responsibly dealing with the deficit.”
The fact sheet found that the additional jobs generated by the payroll tax cut bolstered the Social Security Trust Fund by between $1 billion and $3 billion.
Other highlights include:
- 122 million households received additional take-home pay;
- The payroll tax cut boosted consumer spending;
- The tax cut was responsible for economic growth nationally of one-half of a percentage point; and
- 400,000 jobs were saved or created as a result of the tax cut.
The fact sheet is available by clicking here.