Well, if you work and don't feel lighter in the wallet next year I will be amazed.
“”Well, if you work and don’t feel lighter in the wallet next year I will be amazed.””
After 55 years of working, I decided I needed some time to enjoy life. For much of that time my husband and I were self employed so we paid at double the rate of the payroll tax deduction.
I don’t know anyone now working who expected the decrease in the payroll tax rate to last so that’s why I don’t feel that going “back to original rates” (at least since 1990) is a tax increase.
“”Medicare Tax Increase: The Medicare tax is currently being withheld at the rate of 1.45% from all employees. However, beginning in 2013, an additional 0.9% will be added to the income in excess of the threshold; the threshold amount for 2013 is $200,000 for single filers and $250,000 for joint filers. As a result, the tax rate will be 1.45% for wages up to the threshold amount and 2.35% for wages above the threshold amount. For self-employed taxpayers, the tax rate will be 2.9% for income up to the threshold amount and 3.8% for income above the threshold amount.””
Medicare payroll tax deduction will definitely be an INCREASE over 2012 within the above guidelines and the self-employed will also get hit. As if that makes any sense with our unemployment rate!
Thank you obozo!