Two weeks after Congress hardly evaded America plummeting over the financial cliff, American citizens are spotting less cash in their paychecks. This is due to the payroll tax increase, which many critics are saying causes millions of American to make tough budget calls and cuts that their delegates in Washington are seemingly unwilling to tackle.
USA citizens had been more experiencing a cut on payroll taxes for the last two years, which reduced the tax that funds Social Security from 6.2 percent to 4.2 percent. This amounts to $1,000 a year for someone who makes $50,000 annually and up to $4,500 on a household with 2 high-paid workers.
While many US citizens didn't realize this hit was coming to their paychecks, likely clouded by the big talk of the fiscal cliff, it has been a hot topic amongst many others leading to the creation of many forums where taxpayers impacted by the tax hike can commiserate.
Mark Zandi, a chief economic guru at Moody's Analysis, said To the Associated Press that the higher Social Security tax will slow growth by 0.6 p.c in 2013. This appears insubstantial , but for those USA citizens that will earn $41,000 and will receive $32 less in every bi-weekly paycheck, the change will be major. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based working party, expounded this can definitely be a shock for many Americans striving to get by in a uncertain economy. He announced many will constrict impetuous purchases rather than changing long-term money planning.
Ryan Ellis, tax policy director at USA citizens for Tax Reform, hopes the tax increase will cause young American citizens to take a tough look at Social Security as a whole and start asking tough questions as to the reasons why they're paying out more into a Social Protection system that they are increasingly unlikely to get the full benefit of. He says it is not a Republic or Democratic thing; it affects everyone.
USA citizens had been more experiencing a cut on payroll taxes for the last two years, which reduced the tax that funds Social Security from 6.2 percent to 4.2 percent. This amounts to $1,000 a year for someone who makes $50,000 annually and up to $4,500 on a household with 2 high-paid workers.
While many US citizens didn't realize this hit was coming to their paychecks, likely clouded by the big talk of the fiscal cliff, it has been a hot topic amongst many others leading to the creation of many forums where taxpayers impacted by the tax hike can commiserate.
Mark Zandi, a chief economic guru at Moody's Analysis, said To the Associated Press that the higher Social Security tax will slow growth by 0.6 p.c in 2013. This appears insubstantial , but for those USA citizens that will earn $41,000 and will receive $32 less in every bi-weekly paycheck, the change will be major. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based working party, expounded this can definitely be a shock for many Americans striving to get by in a uncertain economy. He announced many will constrict impetuous purchases rather than changing long-term money planning.
Ryan Ellis, tax policy director at USA citizens for Tax Reform, hopes the tax increase will cause young American citizens to take a tough look at Social Security as a whole and start asking tough questions as to the reasons why they're paying out more into a Social Protection system that they are increasingly unlikely to get the full benefit of. He says it is not a Republic or Democratic thing; it affects everyone.
About the Author:
David DIschler is the founder of Cheap Artistic Checks, a website that sells checks online
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