How Much Would the Payroll Tax Cut Save You?

Residents of San Mateo County could pocket a decent amount of cash from a payroll tax cut extension, according to a report out Thursday by the Joint Economic Committee.

The study, released by Rep. Anna G. Eshoo (D-Palo Alto), details how much money locals would keep in their pockets if Congress extends the payroll tax cut. The extension is part of legislation being discussed by the Payroll Tax Cut Conference Committee.

An average local family with two workers in San Mateo County would keep $1,423 this year, according to the report. That’s compared to $1,429 for Santa Clara County and $925 for Santa Cruz County. The average California family would keep $1,042.

“This report underscores how important it is for Congress to extend the payroll tax cut for ordinary Americans,” said Rep. Eshoo.  “One thousand dollars will go a long way to help families pay their bills and put food on the table.  Congress can and should reach a bipartisan compromise to extend this vital payroll tax holiday for 2012, providing families with an essential injection of cash.”

The report includes a county-by-county breakdown of the additional take-home pay for California workers.

“Many economists have observed that failing to extend the payroll tax cut would slow economic growth this year and cost the economy jobs,” according to a statement Thursday by Eshoo’s office.

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