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Why your paycheck is getting smaller, no matter what
CNN.com ^ | January 2, 2013 | Emily Jane Fox

Posted on 01/02/2013 9:12:14 AM PST by scott0347

For middle class Americans, there will be no escaping higher taxes in 2013. Congress was able to pass legislation to keep broader middle class income taxes from rising. But workers will still have to pay at least 2% more in payroll taxes.

That's because the government had temporarily lowered the payroll tax rate in 2011 to 4.2% from 6.2%, in an effort to keep more cash in the pockets of Americans and provide a boost to the economy. The tax cut, which applies on the first $113,700 in annual earnings, expired on Monday.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS:

1 posted on 01/02/2013 9:12:16 AM PST by scott0347
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To: scott0347

IMHO This is one of the only “good” things in this plan.

It was insanity to reduce the revenue to a program that was already circling the drain and call it a “tax Cut”


2 posted on 01/02/2013 9:17:38 AM PST by CMailBag
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To: CMailBag

Obviously. And yet never mentioned by the media. Go figure.


3 posted on 01/02/2013 9:21:51 AM PST by Wolfie
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To: CMailBag
Technically, you are right. But the sooner the chickens come home to roost, the sooner the sheeple may awaken.

A closely watched consumer confidence index, which measures the American public's sentiments every month, sank six points. It was major turnaround from October, when the index reached a four-year high.

Anybody think the timing is a coincidence?

4 posted on 01/02/2013 9:25:59 AM PST by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: CMailBag; scott0347
It was insanity to reduce the revenue to a program that was already circling the drain and call it a “tax Cut”

yes. If the American people want to cut the revenue to SS by 16%, they will have to cut the benefits by 16%. Which they clearly won't accept. So make 'em pay.
5 posted on 01/02/2013 9:38:21 AM PST by campaignPete R-CT (campaigned for local conservatives only)
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To: scott0347
Congress knows that when everyone else is shedding belongings, dipping into their savings to make ends meet and standing in line for buses or bread, they will still be drawing fat checks, great benefits and have the ability to give themselves another raise.

America proves [daily] that there will be no complaints.

6 posted on 01/02/2013 9:38:21 AM PST by Baynative (Those that work for a living are now outnumbered by those that vote for a living.)
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To: FRiends
I'll have the chili cheese fries,
with a side of cardiac arrest.



The FReepathon is on!
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Donate to Free Republic before digging in!

7 posted on 01/02/2013 9:40:24 AM PST by deoetdoctrinae (Gun free zones are playgrounds for felons.)
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To: scott0347

Regardless of what our pols do, our taxes go up every month by 85 billion, when ben bernanke buys treasuries. Every dollar in your pocket has been devalued, everything costs more, this is a hidden tax amounting to 1 trillion dollars a year!


8 posted on 01/02/2013 9:42:54 AM PST by qman (The communist usurper must go!)
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To: CMailBag

Yeah, that one baffled me as well.
Reducing the revenues to SS when it’s already going bankrupt in the near future?

Insanity? Stupidity? Premeditated malign intent?


9 posted on 01/02/2013 9:46:05 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: scott0347
Again, CNN seems mystified about the reasons middle class tax rates were going to rise. Which is, of course, because a while back the Democrats opposed making the cuts permanent. These guys must live in a world of constant mystery, where stuff keeps happening with no causality, just a vague belief that if it's bad, it must be Bush's fault.

I await, most likely in vain, the day when they notice that those Bush “tax cuts for the rich” are the same tax cuts they're now reporting benefit the middle class. I guess cognitive dissonance is bred out in J school these days.

10 posted on 01/02/2013 10:01:50 AM PST by ArmstedFragg (hoaxy dopey changey)
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To: scott0347

If you hear liberals complaining about their pay dropping by 2%, point out that obama could have cut the middle class taxes by an extra 2% to make up for it.


11 posted on 01/02/2013 10:43:06 AM PST by Terry Mross ( I post so people who hate me will know what I think. And they can't seem to stop reading. LOL)
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To: CMailBag

The problem is letting people think FICA taxes are dedicated to SS. SS and Medicare are the raison d’etre for the payroll tax, but the money just goes into the general fund.

The sooner people realize this, the sooner they will realize their REAL rate of taxation with no guarantee of returned benefit is around 30% (if they pay any income tax at all) and over 50% at higher incomes. And this is federal taxation only.


12 posted on 01/02/2013 10:57:00 AM PST by Mr. Bird
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To: scott0347

Smaller paychecks...woo-hoo!


13 posted on 01/02/2013 11:07:36 AM PST by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: scott0347

This tax revison should have been made permanent as well!!!!!


14 posted on 01/02/2013 1:42:30 PM PST by Moleman
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To: scott0347

That WASN’T a “tax cut”.

They were just taking away from Socialist Security, causing it to become insolvent much sooner.


15 posted on 01/03/2013 12:05:03 AM PST by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: scott0347

I just got hit. FICA. Plus my wonderful CA taxes.

Gotta love that I am now missing about $160 more every month. (From what I can figure out on our pay statements.... I might be wrong and it is more...) Of course this is on top of my “through the roof” taxes the fine government already takes.

Robbery, pure and simple.


16 posted on 01/03/2013 3:56:05 AM PST by Aurorales (I will not be ridiculed into silence!)
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To: Aurorales

I was wrong... hubby just said it is more. The economy is going to do just swell. That is money out of my pocket I won’t be buying stuff with.

The government is soooooooooo smart.


17 posted on 01/03/2013 3:58:35 AM PST by Aurorales (I will not be ridiculed into silence!)
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To: Aurorales

Government workers just got a lighter wallet too. OB supporters are in shock today. That Tax The Rich scheme didn’t work as planned. All us working suckers are the “evil rich”.


18 posted on 01/03/2013 6:19:41 AM PST by USAF80
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To: KoRn

The only thing I can figure out as to why he’d cut the FICA tax was that it wouldn’t benefit “the rich” more than everyone else.

But, another side of me suspects that bankrupting SS sooner WAS one of the goals.


19 posted on 01/03/2013 6:22:23 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: qman
>Regardless of what our pols do, our taxes go up every month by 85 billion, when ben bernanke buys treasuries. Every dollar in your pocket has been devalued, everything costs more, this is a hidden tax amounting to 1 trillion dollars a year!

You are absolutely positively correct! And this is the part that disgusts me. We see our 'Republican' [sic] members of Congress posturing in opposition to raising the top rate by four percentage points while they sit idly by and give their votes of approval to increasing the debt ceiling (i.e printing up more money) to the tune of $2.5 trillion over the last 17 months alone. I can only buy two-thirds of the groceries I could buy with the same amount of money four years ago. yet I go to the store and see people fill up their carts and pay with EBT cards which were funded by that new money. So that one-third of groceries that I no longer receive have essentially been stolen from me by our government and given to someone else in order to buy votes and elections, and our Republican House hasn't done jack to stop it.

20 posted on 01/03/2013 8:45:52 AM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: MrB; CMailBag

Oh? I LOVED it. Just showed the stupidity of our elected officials as well as drove the stake through the heart of the Ponzi scheme that much quicker.

Even I know I’d never see a dime when/if I retire; let alone how Unconstitutional/illegal (if done in the real world) the program is/was.

Kill it, chop of its head and burn the frigger to ashes.


21 posted on 01/03/2013 10:25:46 AM PST by i_robot73
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To: CMailBag
It was insanity to reduce the revenue to a program that was already circling the drain and call it a “tax Cut”

I thought I was the only one.

This was hailed as being a key to turning around the economy. Shouldn't reversing it have just as large of a NEGATIVE effect on the economy?

22 posted on 01/03/2013 10:39:51 AM PST by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: ArmstedFragg

This stuff about temporary vs permanent tax rates is meaningless. The Bush “temporary” tax rates was the longest period of unchanged tax rates since the introduction of the income tax.


23 posted on 01/03/2013 10:51:25 AM PST by Straight Vermonter (Posting from deep behind the Maple Curtain)
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To: CMailBag
So let me get this right....

It's a good thing now to increase a tax to where it was because it was dumb in the first place.

24 posted on 01/03/2013 5:08:37 PM PST by Osage Orange ( Liberalism, ideas so good they have to be mandatory.)
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