The Briefing Room

General Category => Economy/Business => Topic started by: jmyrlefuller on January 09, 2013, 02:29:01 pm

Title: The payroll tax hike wiped out a year’s worth of wage gains
Post by: jmyrlefuller on January 09, 2013, 02:29:01 pm

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/01/08/the-payroll-tax-hike-just-wiped-out-a-years-worth-of-wage-gains/

by Brad Plumer
January 8, 2013

(http://www.washingtonpost.com/blogs/wonkblog/files/2013/01/average-weekly-earnings-payroll.jpg)

The good news: Many Americans saw their paychecks get fatter in 2012, as average weekly earnings rose 2.4 percent over the course of the year.

The bad news: The expiration of the payroll tax cut this January will basically wipe away all of last year’s gains.

(excerpt)

Title: Re: The payroll tax hike wiped out a year’s worth of wage gains
Post by: Relic on January 09, 2013, 07:18:12 pm

I work in healthcare. I've lost ground the last 4 years. I'm old enough and frugal enough that just keeping my job is enough. If I were 30 and actively raising a family, I'd be scared to death right now.

But somehow, consumer confidence is high, and Obama got re-elected.

Someday, a free republic will emerge, and the study of the USA from 2000- ? will be required as a lesson on what not to do.

Title: Re: The payroll tax hike wiped out a year’s worth of wage gains
Post by: Rapunzel on January 10, 2013, 12:28:18 am

Quote from: Relic on January 09, 2013, 07:18:12 pm

I work in healthcare. I've lost ground the last 4 years. I'm old enough and frugal enough that just keeping my job is enough. If I were 30 and actively raising a family, I'd be scared to death right now.
 

What do you do, Relic?  if you don't mind me asking? 

Title: Re: The payroll tax hike wiped out a year’s worth of wage gains
Post by: Relic on January 10, 2013, 02:28:50 pm

Quote from: Rapunzel on January 10, 2013, 12:28:18 am

What do you do, Relic?  if you don't mind me asking?

IT... it's not specific to healthcare. But, in the old days, when I was raising a family, I was in MRI.

Title: Re: The payroll tax hike wiped out a year’s worth of wage gains
Post by: NavyCanDo on January 22, 2013, 06:03:47 pm

Proof  is in the January Paycheck stubs.  Social Security Tax rate increased, going from 4.2 % to 6.2%.
For me that equates to $121.08 a month in higher taxes for SS alone.

So much for his "only raising taxes on the upper 2%”

Title: Re: The payroll tax hike wiped out a year’s worth of wage gains
Post by: happyg on January 22, 2013, 07:44:43 pm

Quote from: NavyCanDo on January 22, 2013, 06:03:47 pm

Proof  is in the January Paycheck stubs.  Social Security Tax rate increased, going from 4.2 % to 6.2%.
For me that equates to $121.08 a month in higher taxes for SS alone.

So much for his "only raising taxes on the upper 2%”

The payroll tax cut took a toll on my son, who has been living paycheck to paycheck. I bought two of his kids a new winter coat this week, knowing he couldn't afford it. Thank God for after Christmas sales!