In a compromise that will defer but not solve the problem, Congress has decided that two more months of payroll tax cuts will be given. A little tax savings is better than nothing.

With any tax law change, there are caveats and unintended consequences. One of those is that they don't want those in higher earning brackets to save more than 2/12's of their annual FICA savings by taking all their income in the first few months. To resolve that they have also added a recapture tax to the payroll system.

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