Changes

Although the 2011 agreement raised the federal borrowing ceiling, the federal debt has continued to grow and the new ceiling is expected to be reached in early 2013.

Although the 2011 agreement raised the federal borrowing ceiling, the federal debt has continued to grow and the new ceiling is expected to be reached in early 2013.

In 2009, Congress enacted a stimulus bill that included a Making Work Pay tax credit that expired at the end of 2010.  The 2010 budget agreement replaced that tax credit with a two-year  temporary 2% reduction in the Social Security payroll tax.  Instead of individual workers paying those taxes into the Social Security Trust Fund, Congress moved money from the general fund to replace those dollars.  This added about $1,000 per year to the average worker's paycheck.<ref name=aarp>{{cite news|title=AARP pushing for retirement of Social Security payroll tax cut|work=Washington Post|page=A17|date=October 19, 2012|first=Suzy|last=Khimm}}</ref>  Without further action, the Social Security deduction on paychecks will increase from 4.2% to 6.2%.

In 2009, Congress enacted a stimulus bill that included a Making Work Pay tax credit that expired at the end of 2010.  The 2010 budget agreement replaced that tax credit with a two-year  temporary 2% reduction in the Social Security payroll tax.  Instead of individual workers paying those taxes into the Social Security Trust Fund, Congress moved money from the general fund to replace those dollars.  This added about $1,000 per year to the average worker's paycheck<ref name=aarp>{{cite news|title=AARP pushing for retirement of Social Security payroll tax cut|work=Washington Post|page=A17|date=October 19, 2012|first=Suzy|last=Khimm}}</ref> while reducing future obligations on the U.S. Treasury because workers paid in less. Without further action, the Social Security deduction on paychecks increased from 4.2% to 6.2%.

==Effects==

==Effects==