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This agreement would also mean a 2 percent employee payroll tax cut for workers next year -- a tax cut that economists across the political spectrum agree is one of the most powerful things we can do to create jobs and boost economic growth.
WHITEHOUSE: President Obama on Tax Cuts and Unemployment Extension
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"Given the continuing high levels of unemployment, we can expect little to no impact on small business wages and employment levels from the return of the employee payroll tax to its previous level, " said Susan Woodward, the economist who worked with Intuit to create the indexes.
WSJ: Intuit: U.S. Small-Business Employment Up in January
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The payroll tax holiday (or the payroll tax cuts) meant that, on the employee side, payroll tax contributions for federal purposes are reduced by 2% for 2011: instead of paying in at 6.2% for Social Security taxes, contributions for 2011 are 4.2% for Social Security taxes.
FORBES: Monday Night Vote Lessens Chances of Payroll Tax Cut Approval