MORE TAXES LOOMING Paychecks Will Shrink After Lapse Of Payroll Tax Holiday
Reported by: Deborah Linz
Web Producer: Bethany Simmons
Reported: Jan. 2, 2013 3:41 PM EST
Updated: Jan. 3, 2013 12:47 PM EST
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Charleston
, Kanawha County
, West Virginia
The new year may be full of promise, but when it comes to your paycheck, expect it to shrink.
Even though income tax isn't going up, the two-year-old payroll tax holiday is over meaning the rate will increase from 4.2 percent back up to 6.2 percent.
Here's how it will affect your household budget:
* If you're making $30,000 a year, you will pay about $50 more a month in taxes.
* If you earn $50,000 a year, you will pay about $83 more a month in taxes.
* If you make $113,000 to $700,000 a year, you will pay an extra $189.50 a month in taxes.
The payroll tax funds Social Security.
The lower rate did not give the federal government enough money. They needed to pull in $120 billion more for the Social Security fund.
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Deborah Linz
