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Workers take home less as social security payroll taxes rise

5:51 PM, Jan 13, 2013   |    comments
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JACKSONVILLE, Fla. -- Although Congress recently worked a deal to avoid the fiscal cliff and not increase middle class income taxes, your paycheck may be looking a little smaller on upcoming paydays.

Social security payroll taxes are on the rise, and a lot of workers saw the money come out of their paychecks Friday.

Two years ago President Barack Obama supported lowering social security taxes from 6.2% to 4.2% as part of the stimulus plan to put more money in the pockets of Americans. For a worker making $50,000 a year, that was about $1000 in tax cuts. But that drop was never intended to be permanent, hence the lower paychecks this year.

"It will affect maybe some of the discretionary spending we might have planned in our family," said Joe Jackson a Jacksonville resident. "That is the cost of one of our vacations."

Jackson said he took about a $100 hit in his paycheck, but he says with all the talk about social security running out of money in the future, he's alright with it.

"It takes money away from our disposable income now but for the future I am hoping that will get us back on track for those retiring in the next few years for that money to be there," Jackson said.

Gary Melton, a South Carolina firefighter visiting Jacksonville, is not so happy with the $85 he was missing from this week's paycheck.

"It is a shame that our government can worry about a lot of things, but not running the government, I am not happy with that, I don't think most Americans are. We need to trim the budget and spend our money wisely," Melton said. "Of course it is going to have an impact on spending, won't do so much traveling, or much spending just like anyone else."

Mike Corbitt of Jacksonville was not bothered by losing $30 out of his check, and says it's only beer money lost but that could end up being a good thing.

"I guess if I could have social security and less beer, that would be better off for me in the long run, so ha ha... it all works," Corbitt said.  

First Coast News

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