Home » ECONOMICS » Why are our paychecks lighter these days?

WAYS TO HELP OUT

We are a 501c3 non profit organization designed to spread conservative values on campus. Your contributions are tax deductible. To donate by mail send contributions to Students For A Better Future.Com P.O. Box 436 Mount Tabor, NJ 07878-0436

Subscribe

Why are our paychecks lighter these days?

Earlier in January, everyone was making a big to-do about the fiscal-cliff bill that would only raise taxes on those making above $400,000 per year.  Congress actually patted itself on the back because they thought they saved the middle class from a nightmare.

One thing most people and congress ignored was the Payroll Tax.  The Payroll Tax Cut has expired.  During the first few weeks of January, many people have noticed less money in their checks.  In fact, some  people are seeing an average of $80.00 to $100.00 which amounts to $1,000 a year.  Let’s take a look at what happened.

While Congress extended and made the tax rates permanent for those making less than $400-450,000 they failed to extend the temporary payroll tax cut.  Because the payroll tax cut wasn’t extended again most of us will be paying 2% more in taxes this year.

Payroll tax cut of 2010 that was extended

  • 2010  President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act into law way back at the end of 2010 in which
  • the law implemented a 2 year extension of the Bush era tax rates, extended expiring unemployment benefits, reinstated the estate tax and extended the $1000 child tax credit.
  •  Making Work Pay tax credit,  was also passed as part of one of the stimulus bills, was expiring.
  •   This was part,  of one of the stimulus bills,  that was expiring.  It was  a refundable tax credit of $400 for individuals and $800 for couples.  The president wanted to replace it  to offset  the impact of losing the extra $800 that most families were getting, and so the idea for the temporary payroll tax cut was born.
The Payroll tax cut of 2011 and 2012

To replace the Making Work Pay tax credit Obama and Congress passed the temporary payroll tax cut of 2% in 2010, to be effective for the 2011 tax year.  It was then extended for the 2012 tax year as well when the politicians decided that it might not be wise to let it expire in an election year.

The payroll taxcut is the FICA portion of your paycheck’s withheld taxes was cut by 2%.   That part of your taxes, which is typically 6.2% of your income and funds Social Security and Medicare, was dropped to 4.2%  for the 2011 and 2012 tax years. It is a tax cut that meant around $1000 annual tax savings.  The Social Security tax is capped at 106,800, the maximun savings that could have een seen by a higher income individual was around $2136

The New Fiscal Cliff Does not Have the payroll tax cut extension. 

The press didn’t want you to know this part and they only decided to talk about the fact about how they saved the middle class from large tax hikes. http://my.blogtalkradio.com/host/segments.aspx

Staff Listen on Blog Talk Radio

Listen to internet radio with Doreen Finkle on Blog Talk Radio

Leave a comment

Weekly Podcasts

Channel 21 LANTV New Jersey Current Programming


Upcoming Podcast

  • Totalitarian Thought
    Totalitarian Thought
    Totalitarianism is a term used by some political scientists to describe a political system in which the state holds total authority over the society and seeks to control all aspects of public and private life wherever possible. Read More Here:   
  • Immigration reform
    Immigration reform
    Under a Trump Presidency, how will our Immigration System be revamped. Learn More:
  • What's Life Like Under A Trump Presidency?
    What's Life Like Under A Trump Presidency?
    Will you have a job? Will Obamacare be repealed? Learn more:

RSS Seton Hall Sports

  • Seton Hall center Angel Delgado wins Haggerty Award
    The rebounding machine grabbed another award on Wednesday. Angel Delgado's list of awards just got a little bit longer. Seton Hall's 6-foot-10 junior center was announced as the winner of the Haggerty Award on Wednesday morning, an honor given to the top player in the Metro New York area by the Metropolitan Basketball Writers Association every […]
  • Seton Hall gets commitment from 2017 forward Sandro Mamukelashvili
    The Pirates may have the forward of the future. While it's still in question if Angel Delgado will return to Seton Hall next season, the Pirates got a commitment from a different frontcourt player on Thursday. Sandro Mamukelashvili, a 6-foot-10 forward from Montverde Academy in Florida, committed to Seton Hall on Thursday, according to several reports. […]
  • Why did NCAA snub N.J. with no March Madness games until at least 2023?
    The Garden State won't be hosting March Madness for at least another five years. New Jersey has hosted NCAA Tournament games successfully in the past, and the Garden State is loaded with passionate hoops fans. But if you're looking to attend March Madness in New Jersey, you'll have to wait until 2023 at the earliest. […]
  • Sources: Seton Hall AD Pat Lyons out of search at Boston College
    Boston College is searching for a new AD, but it won't be Seton Hall's Pat Lyons after he interviewed last week but is out of consideration Seton Hall athletics director Pat Lyons is staying put. Lyons is no longer a candidate to fill the athletics director vacancy at Boston College, sources told NJ Advance Media. […]
  • Darnell Brodie officially signs National Letter of Intent for Seton Hall
    The Pirates have added another player from New Jersey. Seton Hall has known for months now that Newark East Side big man Darnell Brodie was coming to South Orange. But the Pirates made it official on Friday. The Pirates announced that the 6-foot-9, 270-pound Brodie had signed his National Letter of Intent to play for Seton […]
  • With hundreds of kids saved, Bob Hurley sets his sights on saving even more
    With St. Anthony closing, coach and mentor Bob Hurley is looking for something to do. He has a plan: Coach basketball, keep kids in school and steer them toward success. Sounds familiar, right? The sound of Bob Hurley Sr.'s voice conjures up the images of Jersey City's Greenville section. Its echoes awaken not-too-distant memories of […]
  • WATCH: 'One Shining Moment' after North Carolina over Gonzaga in 2017 NCAA Tournament final
    CBS wrapped up the 2017 NCAA Tournament with 'One Shining Moment' to recap March Madness. #OneShiningMoment pic.twitter.com/3uxLQATCW7 -- NCAA March Madness (@marchmadness) April 4, 2017 It wouldn't be March Madness without the ending. On the floor, that meant a 71-65 victory for North Carolina over Gonzaga. On your television sets, it meant waiting for the moment […]
  • With school's fate hanging, Danny Hurley writes emotional tribute to dad, St. Anthony
    NJ Advance Media talks to the former St. Anthony star about his time at the school. Before Dan Hurley was a coach at Rhode Island, Wagner, Rutgers and St. Benedict's Prep, before he was a standout player at Seton Hall, he was a St. Anthony Friar. Before all that and to this day, he was […]
Skip to toolbar