(WBTV) While the middle class may have avoided income tax hikes during the fiscal cliff dealings in Washington, most American workers’ paychecks will be smaller this year than last.
That’s because the payroll tax holiday is expiring. The tax holiday was a two percent cut in Social Security taxes passed in Washington a few years ago to help boost the economy by putting more money in Americans’ pockets. Now it’s time to give that money back to Social Security.
The paycheck you get four weeks from now will likely be less than what you’re accustomed to getting.
Here’s the rundown: if you make $35,000 a year, you’ll pay an extra $700 in payroll taxes. Make 50 grand a year? You’ll pony up an additional $1,000. If you earn $75,000 a year, you’ll fork over $1,5000 more to Social Security this year.
