2 weeks after Congress barely evaded America plummeting over the financial cliff, Americans are seeing less money in their paychecks. That is due to the payroll tax increase, which many critics are claiming causes millions of American to make tough budget decisions and cuts that their delegates in Washington are seemingly unhappy to tackle.
Americans had been more experiencing a cut on payroll taxes for the last 2 years, which lowered the tax that funds Social Security from 6.2 p.c to 4.2 p.c. This amounts to $1,000 a year for someone that makes $50,000 yearly and up to $4,500 on a household with 2 high-paid workers.
While many Americans didn't realize this hit was coming to their paychecks, likely clouded by the hype of the economic cliff, it has been a heavily discussed topic among many others leading to the establishment of many forums where taxpayers influenced by the tax hike can empathize.
Mark Zandi, a chief economist at Moody's Analysis, informed The Associated Press that the higher Social Security tax will slow growth by 0.6 % in 2013. This appears insubstantial , but for those US people that can earn $41,000 and will receive $32 less in each bi-weekly paycheck, the change will be major. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based committee, expounded this will definitely be a shock for many US people striving to get by in a doubtful economy. He announced many will constrict spontaneous purchases instead of altering long term money planning.
Ryan Ellis, tax policy director at Americans for Tax Reform, hopes the tax increase will cause young Northern Americans to take a tough look at Social Security in total and start asking tough questions as to the reasons why they are paying more into a Social Security system they're increasingly not very likely to get the complete benefit of. He is saying it's not a Republic or Democratic thing; it is affecting everyone.
Americans had been more experiencing a cut on payroll taxes for the last 2 years, which lowered the tax that funds Social Security from 6.2 p.c to 4.2 p.c. This amounts to $1,000 a year for someone that makes $50,000 yearly and up to $4,500 on a household with 2 high-paid workers.
While many Americans didn't realize this hit was coming to their paychecks, likely clouded by the hype of the economic cliff, it has been a heavily discussed topic among many others leading to the establishment of many forums where taxpayers influenced by the tax hike can empathize.
Mark Zandi, a chief economist at Moody's Analysis, informed The Associated Press that the higher Social Security tax will slow growth by 0.6 % in 2013. This appears insubstantial , but for those US people that can earn $41,000 and will receive $32 less in each bi-weekly paycheck, the change will be major. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based committee, expounded this will definitely be a shock for many US people striving to get by in a doubtful economy. He announced many will constrict spontaneous purchases instead of altering long term money planning.
Ryan Ellis, tax policy director at Americans for Tax Reform, hopes the tax increase will cause young Northern Americans to take a tough look at Social Security in total and start asking tough questions as to the reasons why they are paying more into a Social Security system they're increasingly not very likely to get the complete benefit of. He is saying it's not a Republic or Democratic thing; it is affecting everyone.
About the Author:
David DIschler owns of Cheap Artistic Checks, a internet site that sells checks online
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