Payroll Tax Cut Extension

The Democrats were to extend the current payroll tax cut which might trim the tax to half of its original value through 31 December. Even though that might approximately bring an extra thousand dollars to each average American family, as all we know, it doesn't come for free. 3.25% surcharge might need to be levied on the topping $1 million, proposed by the Democrats. If not, that might seem to bring out a pure tax cut effect that short-sighted people might end up in similar situation at the end just moving endowment points as macro model interpreted, other than a true wealth redistribution.

http://www.usnews.com/news/articles/2011/11/28/payroll-tax-cut-extension-could-bring-economic-benefits?PageNr=1