2 percent payroll tax holiday ending soon and likely for good

When Congress checked out last month, the House left a handful of Washington, D.C.-area lawmakers with the task of showing up and running a pro forma session.

But the extended absence of most of the 535 Senators and Representatives means that we won't see any tax action until mid-November at the earliest.

As I noted on Sept. 24, one tax break is likely to disappear entirely on Jan. 1, 2013: the 2 percentage point payroll tax cut. or, as it's often referred to, the payroll tax holiday.

I'm mentioning that post -- Payroll tax cut on its last legs -- again because the new conventional wisdom that the employees' payroll tax holiday is ending gets front page coverage in today's New York Times.

My thought on the payroll tax break: Exchange the flat tax rate cut with a progressive payroll tax.

Check out my payroll tax modification idea in that earlier post and let me and readers know what you think in comments here or at the original item.