Soon, you’ll start to notice a slight cut to your paycheck.
For some people, the roughly $40 bi-weekly reduction wont mean very much.
For others, the cut could mean the difference between writing a check for their heating bill and paying for groceries.
Don’t blame your employer.
During the recent “fiscal cliff” negotiations, lawmakers allowed payroll tax rates to jump back up to 6.2 percent from 4.2 percent for all Americans.
For a typical family earning $50,000 a year, that would mean $1,000 in additional taxes over the course of the year.
My feeling is that, while this move may generate more money for federal programs, consumer spending will suffer. You can’t expect people to spend more with less money.
My advise is to make a budget and stick to it. People still have the final say as to where the money they do bring home goes.
What will the payroll tax increase mean to you and your family?