Lack of Payroll Tax Cut Would Hurt Alaskans

Many employees need every dollar

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By Corey Allen-Young
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Story Created: Dec 23, 2011 at 10:07 AM AKDT

Story Updated: Dec 23, 2011 at 10:07 AM AKDT

The fight over passing the payroll tax cut – which Congress finally did, if only for two months, on Thursday night – has spilled over into Alaskans homes, where the possibility of getting less money in a paycheck has people upset. The possibility of us all getting $20 less each week would force some Alaskans to make some tough decisions on how they spend their hard earned money.

You won't find as hard a worker as Keisha Tavita. A mother of a son and a daughter, she's worked at Hula Hands Restaurant for two years and values every dollar she earns. “I buy stuff for my kids, pay rent, pay my car payments,” said Tavita. But with Congress’s fight over extending the payroll tax cut, she joins the rest of working America who would see about $40 less coming in every two weeks.

It’s a situation that around town isn't making people happy. “Things won't get bought that might have gotten bought if there was extra money in the bank account,” said one Anchorage woman. “My heating fuel is $750 a month and electricity double that; that $40 a month actually would benefit and help pay for all of that,” said another Anchorage woman. “I give Congress an ‘F,’ they should all be fired,” said an Anchorage man. “They are horrible – what they are doing they are taking away people's livelihoods, the people that really need it are the one's that are going to get hurt.”

Families like Keisha Tavita’s and her coworkers depend on every dollar. “I think it’s unfair and they should fix it,” said Tavita. “I'll be pretty mad because you work hard for your money you want to get what you worked for,” said Alana Abbey who works at Hula Hands. Owner Bill Hoppai says it’s not only bad for his employees but bad for business. “They are doing it at the wrong time, the holidays will be over in January and people will be in debt, two weeks most of the restaurants we won't have much business, every thing slows down.”

He says Congress needs to step it up to help out all Americans who are struggling. Because its every day people like Keisha that use every dollar they work for. “Do their job. My kids got to punch in every day when they come here, they have to do their job, they work and then they go home, why can't they do the same?”

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cooljulie said on Friday, Dec 23 at 8:00 PM

This payroll tax cut may seem like an extra $20 in your weekly earnings, but what is really happening? Your tax exempt contribution to social security is being reduced, and the difference which shows as an increase in take home wages is now being taxed. So the government is robbing our retirement, taxing on the difference, and telling us they are helping us.

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