[So Cal Rocket]

The increase in withholding isn’t due to more jobs... it’s due to people cashing in their capital gains in 2012 since it appears that the captital gains tax rate will go up SIGNIFICANTLY in 2013. At a minimum they will go up by the 3.8% Obamacare Tax... significantly more if the Bush Tax Cuts are allowed to expire.

When you cash in stock or other investments which have a capital gain, there is withholding taken out for Federal Income Tax. This is where the increase is coming from.

[mrsmith]

And reducing their tax-exempt contributions (401k etc.) because they’re desperate.

[Amntn]

And don't forget people, like me, dipping into their 401K to make ends meet.

[grumpygresh]

I agree. Many companies and individuals are probably doing all they can to make money and declare income this year as much as possible. Businesses have also found ways to do more with fewer employees, increasing profits. But with taxmageddon looming, many companies will start laying off employees and shutting down some operations to re-assess their business models.
The big swoon is coming in the next few months.