What the payroll tax cut extension means for Minnesota

Posted at 10:28 AM on December 23, 2011 by Paul Tosto
Filed under: Economy, Jobs and unemployment

The 2011 two percent payroll tax cut, extended today for another two months, has meant some 3.1 million Minnesotans have kept $2.2 billion more of their money this year, according to a U.S. Treasury analysis.

That works out to just over $700 on average. Wisconsin has seen a similar benefit, with about 3.2 million people holding on to $2.2 billion.

That's real money, so you can see why economists here and across the country worried that without Congress extending that, there could have been serious consequences for the fragile economic recovery.

Nationally, Treasury notes the cut has provided about $1,000 more in the pockets of families making $50,000.

Thanks to the extension approved today, those benefits will last at least a couple more months.