Economists are growing more worried that Congress will not extend this year’s payroll-tax cut past Dec. 31, pulling up to $120 billion out of consumers’ pockets and cutting into already tepid forecasts for household spending in the first half of 2012.
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.
