A number of our Facebook fans expressed concern last week when they discovered that payroll taxes would be increasing in the wake of fiscal cliff negotiations. One person wrote in dismay, "What about all the months of discussion that increasing taxes on the middle class would hurt the economy?"

In Monday’s budget brief, NPP’s senior research analyst Chris Hellman explained the payroll tax cut and President Obama's proposal to extend it. But the proposal is controversial—it's been criticized by both Democrats and Republicans. Republicans argue that President Obama must find a way to offset the tax cut by cutting ...