Millions noticing paychecks lighter today, due to payroll tax hike.

Gabriella Hoffman’s paycheck is a little lighter today, thanks to a payroll tax increase that is forcing millions of Americans to make the kind of tough budget cuts their representatives in Washington lawmakers seem unwilling to tackle.

Hoffman, a 21-year-old Virginian who works at a nonprofit, estimates her paycheck will be roughly $30 less this biweekly pay period, or about $780 annually, thanks to the end of a two-year cut on payroll taxes, which fund Social Security. The tax has risen back up to 6.2 percent from 4.2 percent, costing someone making $50,000 annually about $1,000 per year and a household with two high-paid workers up to $4,500.

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xptrish
xptrish Jan 12, 2013
Great, ...here's an idea,stop sending $$Billions$$ to other countries and doing it off the backs of us hard working Americans!
1 like vote
arsiel
arsiel Jan 12, 2013
What a great year to enter the job market... :x I guess less pay is still better than no pay.
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mnvikings11
mnvikings11 Jan 12, 2013
People should've seen this coming, we have debt to be paid, it's coming out of everyone's pocket.
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lilywow
lilywow Jan 12, 2013
Yes this has put a little dent in my wallet. However I am making it up with what I make at Dealsplus. I don't like to get into politics, but the 2% tax cut from the Social Security had to expire sooner or later. As it is social security is so underfunded.
1 like vote
chuckydealpl
chuckydealpl Jan 12, 2013
guess i have to spend even more time here at DP scouring for better money saving deals
2 likes vote
dealio23
dealio23 Jan 12, 2013
I agree. I'm thankful to Dealsplus for the opportunity to save money and make money! :)
1 like vote
WideAnglePhoto
WideAnglePhoto Jan 12, 2013
Taxing the Wealthy to Balance the Budget Will Not Work Some argue for taxing the wealthy to reduce federal deficits. However, hiking taxes on taxpayers in the two highest brackets would increase their tax rates to mathematically impossible levels. To close the 2035 deficit, the top two tax rates would increase to 159 percent and 166 percent, and in 2050 they would reach 236 percent and 246 percent. http://www.heritage.org/federalbudget/tax-wealthy-deficits
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TexasTeacher
TexasTeacher Jan 12, 2013
And that will be repeated until the end of the month.
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branie
branie Jan 12, 2013
Even though the extra few dollars in the paycheck was great every week for the last two years, I personally understood the fact it was TEMPORARY. Perhaps they will bring it back, I doubt it though :(
2 likes vote
DealLeader
DealLeader Jan 12, 2013
It was a calculated move when it was implemented to lead people to believe there had been a tax cut, when in fact it was only a "tax holiday". The time frame for the "holiday" was over and now it is being deducted again. People are being caught unaware because it really wasn't a part of the "fiscal cliff" conversation and they believed they wouldn't see a tax hike.
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WideAnglePhoto
WideAnglePhoto Jan 12, 2013
The president did sign a bill yesterday that prevented one middle-class tax hike — the expiration of the Bush tax cuts for 98 percent of Americans — but he makes no mention of the fact that he did absolutely nothing to block the expiration of the payroll-tax holiday, a tax increase on almost 100 percent of Americans (excepting the small number of state- and local-government employees who are enrolled in a different retirement system). And while it doesn’t amount to $2,000 an American, the mean tax increase for the 77 percent of Americans whose overall taxes will be higher than they were in 2012 isn’t far off, adding up to $1,635. Eighty-one percent of the middle quintile of Americans will see their total tax bills rise. http://www.nationalreview.com/corner/336806/obama-panders-middle-class-he-lets-their-taxes-rise-patrick-brennan#
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branie
branie Jan 12, 2013
I never said I was happy about it and my pay check also went down and that sucks to be honest, but my point was it was temporary and yes they could have, actually they should have extended it for maybe another year. I just have to wonder in another year would we be any better financially? How about another two years? IDK- Just sucks every penny counts and they know that but they went ahead and let the 2% tax expire.
2 likes vote
WideAnglePhoto
WideAnglePhoto Jan 12, 2013
Well there are a few ways to take care of our financial problems as a country, either spend less, or take in more money. With the amount the country is in debt it is impossible to tax our way out of this problem. At some point the government will have to drastically cut its size in order to survive. This blame the rich is just slight of hand, for those who aren't paying attention.
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