Is the Making Work Pay Credit coming back? (US taxes)

Possibly, according to the Washington Post.

Earlier this month, I remarked that America has had some kind of tax stimulus in effect since before the Lehman crisis of 2008. During the last year of Bush, there was a stimulus check sent out around July. It was based off the earned income you reported for 2007 OR the amount of taxes you paid that year. (So American expats in Japan, who took FEIE, still got the check!)

Then, in early 2009, Making Work Pay (IRC section 36A) was put into effect, for two years. This was somehow politicized, and Japan-side American expats may have received it in 2009 but not 2010. Or, for neither year.

Of course, back home here, the Making Work Pay Credit was almost always issued—but no one knew it because it was buried as a line on the 1040 tax return. Typical how Democrats cut taxes, they don’t even let you know it’s happening.

This middle-class stimulus was changed into a social security payroll tax holiday for 2011 and 2012. Now, that will end at the Fiscal Cliff on January 1, 2013.

The Obama Administration says time to bring back Making Work Pay. I agree. The country still needs that sort of stimulus.

[Update 10/26/12: Firedoglake’s David Dayen (D Day) on the proposed return of Making Work Pay.]