2 weeks after Congress hardly avoided America plunging over the economic cliff, American citizens are seeing less money in their paychecks. That is thanks to the payroll tax increase, which many critics are claiming causes millions of American to make tricky budget decisions and cuts that their delegates in Washington are reputedly unhappy to tackle.
North Americans had been more experiencing a cut on payroll taxes for the last 2 years, which reduced the tax that funds Social Security from 6.2 p.c to 4.2 percent. This amounts to $1,000 per year for someone that makes $50,000 yearly and up to $4,500 on a household with two high-paid employees.
While many US citizens did not realize this hit was coming to their paychecks, likely clouded by the big talk of the economic cliff, it's been a heavily discussed topic amongst many others leading to the founding of countless forums where taxpayers affected by the tax hike can commiserate.
Mark Zandi, a chief economic guru at Moody's Analytics, informed The Associated Press the higher Social Security tax will slow growth by 0.6 percent in 2013. This appears insubstantial but for those Americans that can earn $41,000 and will receive $32 less in every bi-weekly payslip, the change will be significant. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based committee, recounted this can definitely be a shock for many Americans trying to get by in a doubtful economy. He said many will restrict spontaneous purchases instead of altering long-term monetary planning.
Ryan Ellis, tax policy director at Northern Americans for Tax Reform, hopes the tax increase will cause young Americans to take a tough look at Social Security in total and start asking tough questions as to the reasons why they are coughing up more into a Social Security system that they're increasingly not very likely to get the full benefit of. He says it is not a Republic or Democratic thing; it affects everybody.
North Americans had been more experiencing a cut on payroll taxes for the last 2 years, which reduced the tax that funds Social Security from 6.2 p.c to 4.2 percent. This amounts to $1,000 per year for someone that makes $50,000 yearly and up to $4,500 on a household with two high-paid employees.
While many US citizens did not realize this hit was coming to their paychecks, likely clouded by the big talk of the economic cliff, it's been a heavily discussed topic amongst many others leading to the founding of countless forums where taxpayers affected by the tax hike can commiserate.
Mark Zandi, a chief economic guru at Moody's Analytics, informed The Associated Press the higher Social Security tax will slow growth by 0.6 percent in 2013. This appears insubstantial but for those Americans that can earn $41,000 and will receive $32 less in every bi-weekly payslip, the change will be significant. Michael Tanner, a senior fellow at the Cato Institute, a Washington-based committee, recounted this can definitely be a shock for many Americans trying to get by in a doubtful economy. He said many will restrict spontaneous purchases instead of altering long-term monetary planning.
Ryan Ellis, tax policy director at Northern Americans for Tax Reform, hopes the tax increase will cause young Americans to take a tough look at Social Security in total and start asking tough questions as to the reasons why they are coughing up more into a Social Security system that they're increasingly not very likely to get the full benefit of. He says it is not a Republic or Democratic thing; it affects everybody.
About the Author:
David DIschler is the founder of Cheap Artistic Checks, a website that sells checks online
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