Cutting Americans off at the knees thru taxation

Economy may falter if tax cut expires Dec. 31 – USATODAY.com: The tax cut was approved as a temporary measure last fall. The law cut the tax paid by employees, which supports the Social Security program, to 4.2% of the first $106,800 of a worker's income from 6.2%. That cut gave $1,000 back to a worker earning $50,000 a year.

The problem is that 70% of economists' forecasts anticipate the cut would be extended in 2012, as the economy struggles and unemployment remains stubbornly high, said Randell Moore, editor of the Blue Chip Economic Indicators forecasting newsletter. Throw in the $30 billion at risk if Congress doesn't agree to continue long-term unemployment compensation, which is also up for renewal, and it amounts to almost 1% of gross domestic product, said Joel Prakken, chairman of Macroeconomic Advisers in St. Louis.