M.G Tax cut extension passes without sales tax break for Florida

Congress agreed today to extend a payroll tax break through the end of the year for millions of Americans, despite the objection of some Florida lawmakers that the country shouldn’t add another $90 billion to the federal debt.The measure, which passed with solid majorities in the House and Senate, is part of a package that also continues payments to the long-term unemployed and prevents a large cut in Medicare reimbursements to doctors.But the bill does not extend a provision giving taxpayers in states without an income tax, such as Florida, the ability to deduct the sales tax when they itemize on their federal returns. It won’t affect Floridians this year because the 2011 tax year falls under the old law. Lack of action would affect sales tax payments made this year.Lawmakers say they’re not too worried because they have until the end of the year to extend the deduction, in place since 2004.

The payroll tax reduction will save around $80 a month for people earning $50,000 a year and will save high-income workers a maximum $2,200 for the year.

The Senate approved the legislation 60-36, with both Florida senators — Republican Marco Rubio and Democrat Bill Nelson — voting in favor. The House adopted it 293-132, with Rep. Bill Posey, R-Rockledge, and Rep. Sandy Adams, R-Orlando, voting against it. President Barack Obama is expected to sign it.

The Congressional Budget Office says extending the tax break will add another $89.3 billion through 2022 to a federal debt that’s now a record $15.3 trillion. That’s because the package does not cover the cost of the tax cut.

Republican leaders in the House initially had insisted the tax cut be financed by savings elsewhere in the budget, but they dropped that demand.

Adams was among lawmakers who voted against the bill because it will add to the debt, which many GOP lawmakers promised to cut when they campaigned in 2010.

“I came to Washington, D.C. to make a difference, to change the trajectory of our nation’s spending, and to put our country back on a path to economic prosperity,” the freshman lawmaker said in a statement. “While millions of families across the country are tightening their belts in this economy, it’s time that the federal government is held accountable to the American people by acting responsibly with their hard-earned money.” What do you guys think?

This entry was posted on 19. February 2012 at 06:08 and is filed under Introduction to Sociology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.