New Year's Tax Hike?

White House and Congress battle over payroll tax cut extensions.
2:10 | 12/19/11

Coming up in the next {{countdown}} {{countdownlbl}}

Coming up next:



Skip to this video now

Now Playing:


Related Extras
Related Videos
Video Transcript
Transcript for New Year's Tax Hike?
White House and congress are still battling over a tax cut that will affect a 160. Million Americans. If the Social Security payroll taxes not extended by January 1 working Americans will see their taxes go up on average a thousand dollars. Over the weekend it looked like the deal was on the senate passed a two month extension by a landslide. But house Republicans revolted both sides dug -- tonight Americans aren't real danger of being slapped with a tax hike on New Year's Day. So ABC's Jim Havel asked you to tell washing with that would mean for your families. It's right here on your paycheck the Social Security line and beginning would January payrolls. The amount being taken out of your check could go up nearly a thousand dollars a year. Because Washington politicians are using the tax cut as a bargaining chip. I have to say to -- people. In Washington DC there -- Republican it's time to grow. And anger reflected in today's ABC news Washington Post poll. -- a job approval rating of just 20%. Who Republicans in congress who have blocked the payroll tax cut while president Obama's approval rating jumped to 49%. Why I think taking money out of their paychecks. Here's the breakdown if you make 35000. The tax break means an extra 700 dollars a year to year. 50000 -- to grant in anyone making more than a 1101000. Gets 2300. Back. It's christmastime it can mean an expert or do -- -- grocery likened by 1000 let's see here. That hurts Washington that money out of my paycheck. At the end of the year -- an entire month's -- And it's not just personal most economists say the tax cut does stimulate growth. Overall about 1% and nearly a million jobs. Plus it's helping Americans restore their nest day according to a University of Michigan survey only 15%. Plan to spend their windfall. A lot of people are feeling like they need a Christian they want to use this extra money to. Pay down their credit card or build up their assets. Still it's a choice many are telling Washington they'd like to make themselves. Jim a -- ABC news New York.

This transcript has been automatically generated and may not be 100% accurate.

{"duration":"2:10","description":"White House and Congress battle over payroll tax cut extensions.","mediaType":"default","section":"ABCNews/WNT","id":"15192857","title":"New Year's Tax Hike?","url":"/WNT/video/years-tax-hike-15192857"}