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The Great Tax-Cut Debate: Check Your Paycheck


Congress must decide the fate of Bush-era tax cuts. The cuts expire Dec. 31 although IRS staff need lead time to change withholding levels for 2011. If there's no vote on Capitol Hill in November, the IRS is poised to tell employers to prepare payrolls as if all tax cuts, enacted in 2001 and 2003, expire. Here's how your personal cash flow could be squeezed. The top figure shows how income earners will see withholding climb over the year. Click on the lower table to figure how take-home pay, in semi-monthly paychecks, will shrink if rates revert to 2000 levels.

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