What the tax cut extension means for your paycheck

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When President Obama officially extends tax cuts enacted by his predecessor in a Rose Garden ceremony today, he’ll be ensuring the average American will pay about $2,000 less in taxes per year for the next two years.

That figure includes a temporary holiday on the payroll tax, which helps fund Social Security.

The tax cut extension means big bucks for the super-rich. Lebron James, who makes $14.5 million each year, will save more than $600,000 in taxes for this year. A family making $100,000 per year will pay about $6,000 less in taxes than if the tax cuts had expired. The average savings for all Americans, according to the non-partisan Tax Policy Center, is about $2,800.

Full Story: Your Paycheck: What the Obama Tax Cut Extension Means for You – ABC News