A move in Washington might affect what many wage-earners across the country and the Grand Strand and Pee Dee see on their paychecks.
A hold up on extending the payroll tax could hit many families-costing them about a $1,000 a year. The new proposal would drop efforts to cut the amount paid by employers, but would reduce the rate paid by workers to 3.1 percent of wages from the current 4.2 percent. If congress does nothing, the rate for employees will rise to 6.2 percent in January.
"It's very political. At first it sounds, 'oh no brainer' it's a thousand dollar tax cut for the typical person," Rob Salvino, Economist at Coastal Carolina University breaks it down.
"If you look at that 2% percent that would go back in bringing it back to 4% again. On a household that would earn a 50,000 a year, that 2 percent would be about a thousand dollars."
So, about $83.33 a month, for a household earning more than $50,000 annually.
Last week, the Senate voted down a bill that would extend a payroll tax cut. Now, congress has about four weeks to come to an agreement on if they will extend it, and how to pay for it.
President Barack Obama urged Congress on Monday to extend a payroll tax cut, saying the economic recovery is "still fragile" and middle class families need the money.
"My message to Congress is this: Keep your word to the American people and don't raise taxes on them right now. Now's not the time to slam on the brakes. Now's the time to step on the gas," Obama said at the White House.
He said despite a decline in the unemployment rate to 8.6 percent in November, "our recovery is still fragile" and the nation's economy could be hurt by economic turbulence in Europe.
As for Salvino, when asked if he thinks something will pass, and how quickly, he replied, "only time will tell."
The AP contributed to this report.
