TELL US: Did Your Paycheck Shrink This Year?

January 15 will be the first paycheck of 2013 for many workers. Did you notice the higher taxes you're now paying?

This year, the 15th of January isn't just halfway through the first month of the year. For many people who are paid twice a month, the 15th will be their first paycheck of the New Year - and the first check they've gotten since the end of the FICA tax holiday.

Remember the Fiscal Cliff? Part of the battle between President Obama and the Republican Congress included whether the employee's share of that temporary tax reduction would be allowed to lapse, and thus hike taxes on middle-class workers.

The Fiscal Cliff resolution wound up including the expiration of a 2 percent Social Security temporary tax reduction, the result of which is now reflected in everyone's paycheck.

Now, the employee's share of FICA tax is 6.2 percent, up from the 4.2 percent average, middle class folks were paying before the end of the tax reduction.

Have you been paid yet this year? Have you noticed less in your take-home pay? What do you think about it?


Bob English January 19, 2013 at 01:38 PM
It was always understood that the temporary cut in the wage tax would exprire on December 31, 2012 since the normal rate is needed to properly fund Social Security. I dont think there was anyone (D or R) trying to make the case to extend the cut.
howsthefam January 19, 2013 at 01:58 PM
Right. It was a temporary cut, a payroll holiday used as a stimulus to jump start the economy after it had contracted 25 percent. When I think of that now, I'm amazed how fast we got back up on our feet. I guess it worked. Now, back to making Social Security solvent forever!
C. DeFonce January 20, 2013 at 11:42 AM
Now if Congress can finally realize that their ineptitude in spending is not an excuse to borrow from the Social Security coffers that they were never supposed to borrow from in the first place? Most tax paying citizens won't mind funding Social Security, if the lawmakers stop placing I.O.U.'s towards the borrowed SS funds that they have no intent if ever repaying. The usual fix is always to turn to increasing taxes later instead of correcting the problem, Controlling the Useless Spending!
howsthefam January 20, 2013 at 02:15 PM
In this case, lawmakers did not borrow from SS. The decreased payroll deductions went directly into the pockets of consumers, who spent it at a time when the economy desperately needed stimulation.
C. DeFonce January 20, 2013 at 02:54 PM
True, about the deductions 'howsthefan', but I am not overly optimistic on the availability of funds in the SS system when it has been inappropriately used as a source of borrowing contrary to it's original purpose. If I could only trust that the borrowing will not continue within our present group of 'terrific leaders' and the SS program is solely used for distribution among eligible retirees, I would have a much wamer fuzzy knowing that myself and my children are funding themselves and not the illegal misappropriation of these funds.


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