Your Paycheck Will Be Smaller Next Week
It's all but certain that payroll tax cut will expire Monday
By John Johnson, Newser Staff
Posted Dec 29, 2012 12:04 PM CST
   (Shutterstock)

(Newser) – No matter what does or doesn't happen with this weekend's fiscal cliff negotiations, most Americans are going to see a smaller paycheck next week, reports the Wall Street Journal. That's because neither party is still talking about extending the 2-year-old payroll tax cut, which expires on Monday, reports the New York Times. As a result, the Social Security payroll tax will go back to 6.2% from the current 4.2%—meaning a household earning $50,000 a year will pay an additional $1,000 in taxes, or about 20 bucks a week.

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Showing 3 of 72 comments
cornelison
Dec 30, 2012 7:46 AM CST
The middle class won't grow without much higher taxes on the rich - much higher than what is proposed. There can be no significant revenue to help pay off the debt without doing so. When jobs are exported there's less revenues as well. The conservatives kept pushing for sending jobs overseas so they must pay for what they did.
2poor
Dec 29, 2012 10:20 PM CST
While this article is correct... it is not without a major flaw. The SS portion of the FICA tax does inflate to the previous level of 6.2% (Thank God) ALSO, YES, the total FICA for any given employee is 15.3%. Did you get a grasp of that...newser fans? I said so accurately...15.3%!! YEP, the employee's FICA portion of payment will return to 7.65% NOT 6.2% in total. His / her employer must match the employee's portion to total 15.3% AND, the self employed will pay the full 15.3%! TEA PARTY stands for Taxed Enough Already....join up like I did.
right2dave
Dec 29, 2012 8:05 PM CST
Which like many of us have paid hundreds of thousands of dollars into over our working lives we will never see.