Q: Payroll Tax Increase explanation

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If you've received your paycheck in January 2013, I am sure you have noticed a decrease in your pay. This is because the payroll tax cut of 2% in effect for 2010 and 2011 has expired.
Look at your paystub and you will notice that you are paying an additional 2% towards the social security tax withholding. We received a temporary tax cut for the last 2 years and that has inevitably expired.
Before 2010, we were all paying 6.2% in social security tax. In 2011 and 2012, we paid 4.2%, and now it's back to 6.2%.

payroll-tax-increase-2013

lilywow (rep: 7.43k) posted Jan 12, 2013

158 views

9 Answers

thanks for this explanation- not liking this 2% increase one bit!

gangstabarbie (rep: 8.8k) posted Jan 12, 2013

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You can thank the democratic party for that!

MdavidK30 (rep: 3.43k) posted Jan 12, 2013

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i been working so much overtime lately that i haven't even notice i over heard co-workers complaining about it

rd995 (rep: 24.2k) posted Jan 12, 2013

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Bush initially signed the temporary decrease so it is really no one's fault. With that said, I def do not like any of Obama's economic policies.

kffight3r (rep: 709) posted Jan 12, 2013

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Bush had nothing to do with this. Obama gave us this holiday 2 years ago and now it's expiring. It should never have happened since it is your contribution towards your social security

quartrhoss (rep: 43) posted Jan 13, 2013

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It was only suppossed to be for 1 year I thought.

krmills1 (rep: 12.9k) posted Jan 13, 2013

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I'd really like to know why every tax cut is temporary and every tax increase is permanent.

fluffy (rep: 2.12k) posted Jan 15, 2013

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Because politicians are crooked, greedy twits with no money management skills. The question is, why are there tax increases at all? Every time the economy earns money, wages go up and spending increases, which provides more tax revenue at the same rate as the economic growth. Why should there be a tax increase? Ever?

nthsll (rep: 12.3k) posted Jan 15, 2013

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