I read in the newspaper today that Obama is considering expanding the payroll tax reduction of the FICA tax into 2012. There is even some talk of reducing it even more than the amount it was reduced in 2011. Background: For 2011 the employee portion of the FICA tax, normally 6.2% of your wages was reduced to 4.2%. So less money is being withheld from your check for FICA taxes in 2011. This tax cut will expire on December 31, 2011. Example: Suppose you make $800 a week. The FICA tax cut of 2% for 2011 has put $16 a week back into your pocket. Over a year that is a $832 tax cut. Now supposing they reduce it by 3% for 2012. The rate would now be 3.2% The person making $800 a week would keep $24 a week compared to 2010 rates. Over the course of a year that is $1,248, a significant amount. Thoughts? Good idea or bad idea?