Less Take Home Pay for the New Year

Less Take Home Pay

In the final hour of the 112th session of Congress, lawmakers came together to prevent federal income tax hikes on individuals making $400,000 per year or less. That is welcome relief during a time when many people have not seen a pay increase for some time. While this particular tax hike was averted, another was not.

In 2010, Congress reduced employee payroll contributions to Social Security from 6.2 to 4.2 percent. The effort was part of a move to help stimulate a stagnant economy and help financially struggling citizens keep more of their money. However, the measure was only meant to be temporary in nature, and the 6.2 percent contribution level is now back in effect for 2013.

As the 113th Congress continues the debate over taxes and cost cutting efforts, the final word on how 2013 taxes will be shaped remains to be seen.

Do you think keeping Social Security taxes at 4.2 percent should be a part of 2013 Congressional action?

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3 Comments

  1. Jonn

     /  January 29, 2013

    I’m ok with putting the rate back where it should be. I just hope the system will be able to pay me back when I retire. I’m concerned that the money won’t be there when I retire, and I’ll have to work till i’m 75 before I can finally hang my hat by the door and call it a day.

  2. Grannybunny

     /  January 29, 2013

    I support the return of the rate to 6.2%. The reduction was never intended to be permanent, but just to temporarily stimulate the economy. Furthermore, Social Security needs the money.

  3. Larry G

     /  January 29, 2013

    I support the return of the 6.2% rate. As more and more baby boomers are reaching retirement age and eligible to draw upon social security, these payments are necessary to keep social security solvent to some extent.

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