The tax package that Congress passed in the final hour of New Year’s Day will protect 99 percent of Americans from an income tax increase, but almost every person will still see a hit to their paychecks. That’s because the legislation did nothing to prevent a reduction in the Social Security payroll tax from expiring. Social Security is financed by a 12.4 percent tax on wages, with employers paying half and workers paying the other half. That was reduced to 4.2 percent in 2011 and 2012, saving a typical family about $1,000 a year. In the deal, that tax break — always intended as a temporary tax holiday — was allowed to expire.
Great just what we needed more mini-cliffs uncovered. The only reason they intentionally or accidentally let this expire is because Social Security went bankrupt 3 years earlier than it was suppose to, so all you people about my age and younger will be footing the bill and may never see any of this money. Thank you America! According to AOL jobs, workers earning the national average salary of $41,000 will be $820 poorer next year, with the cut greater the higher the salary up to $113,700. The people who make lower than this will really feel the pain, so I am sure we will see a rise in the division between classes the rich get richer and the poor get poorer as well as an increase in homeless.
It is about time they get nervous but in the end they might take a hit and find more ways to nickel and dime you for their services. The American people especially the older variety should be extremely worried about what happens when they can no longer afford the much needed healthcare. It is time we reform the whole system instead of bits and pieces. Universal healthcare anyone?
Wow show some consideration for those of us who pay your salary and come to a decision. This is what I am talking about, the selfish and agenda fueled politics that is America now. These men won’t be affected as badly as the rest of us hard working Americans. IF they don’t fix the alternative min tax then see your taxes spiking and owing more. Tax season may have to be delayed or even worse don’t expect to see your refund for a while.