2013 Brings Smaller Paychecks, Greater Frustration for Taxpayers
By: KOLR10
Updated: January 4, 2013
It's payday for many people, and they're noticing a slightly smaller paycheck.
That's because we're all paying 2 percent more in Social Security payroll taxes, compared to what you've paid the past two years.
Those who earn $32,000 a year get $50 a month less in their paychecks while those making the maximum amount subject to payroll tax -- about $114,000 -- will see nearly $190 less a month.
"it's just life," says Byron Brown of Springfield. "Life happens. I don't know if you're ever prepared for that. I think it will affect us, but you make do with what you have and work a little harder."
"The impact is just starting to be felt as people get their first paychecks of the new year," says financial planner Dean Young.
"Kinda sucks," adds Colin Crump of Springfield. "I don't get paid much as it is."
The Social Security payroll tax holiday was passed in 2010 as a temporary measure to stimulate the economy.
"When you take a look at Social Security, that program is under water," says Young. "There's more being paid out than taken in."
And many believe there have been no hard fights in the current budget negotiations to keep the tax cut in place.
"So raising that tax or allowing it to go back up helps create and extra $125 billion of revenue to go into the system within the next year," adds Young. "You have a lot of money being paid out and not as many younger people paying into the system and that's where the problems are. Where not enough money is going in to fund payments being promised."
"My first paycheck will come in a week or so," says Charlie Self, also of Springfield. "I'm prepared for that and like many hope folks in Washington, D.C. can do a better job organizing our world. I think politicians of both parties need to think deeply about reigning in spending about creating wealth and not sticking it to the people who work hard to make a living."
And those who already feel the pinch in their paychecks will continue to notice a little more pain.
"Kinda sucks everything is going up and it doesn't look like there's gonna be change anytime soon," says Crump.
On Thursday, Congressman Billy Long said, "That's going to be a hit for people in their paycheck, but Social Security is going bankrupt. We have file cabinets that are empty over in West Virginia where the Social Security money is supposed to be."
That's because we're all paying 2 percent more in Social Security payroll taxes, compared to what you've paid the past two years.
Those who earn $32,000 a year get $50 a month less in their paychecks while those making the maximum amount subject to payroll tax -- about $114,000 -- will see nearly $190 less a month.
"it's just life," says Byron Brown of Springfield. "Life happens. I don't know if you're ever prepared for that. I think it will affect us, but you make do with what you have and work a little harder."
"The impact is just starting to be felt as people get their first paychecks of the new year," says financial planner Dean Young.
"Kinda sucks," adds Colin Crump of Springfield. "I don't get paid much as it is."
The Social Security payroll tax holiday was passed in 2010 as a temporary measure to stimulate the economy.
"When you take a look at Social Security, that program is under water," says Young. "There's more being paid out than taken in."
And many believe there have been no hard fights in the current budget negotiations to keep the tax cut in place.
"So raising that tax or allowing it to go back up helps create and extra $125 billion of revenue to go into the system within the next year," adds Young. "You have a lot of money being paid out and not as many younger people paying into the system and that's where the problems are. Where not enough money is going in to fund payments being promised."
"My first paycheck will come in a week or so," says Charlie Self, also of Springfield. "I'm prepared for that and like many hope folks in Washington, D.C. can do a better job organizing our world. I think politicians of both parties need to think deeply about reigning in spending about creating wealth and not sticking it to the people who work hard to make a living."
And those who already feel the pinch in their paychecks will continue to notice a little more pain.
"Kinda sucks everything is going up and it doesn't look like there's gonna be change anytime soon," says Crump.
On Thursday, Congressman Billy Long said, "That's going to be a hit for people in their paycheck, but Social Security is going bankrupt. We have file cabinets that are empty over in West Virginia where the Social Security money is supposed to be."
