(CNNMoney) - Most Americans plan to cut spending to make up for income lost from the payroll tax hike, according to a New York Federal Reserve study released Wednesday. The payroll tax cut, which was in effect in 2011 and 2012, reduced the amount withheld from workers' paychecks to 4.2%, down from 6.2%. That put […]
2013 is a tough year if you owe payroll tax, as most of us do. Not only did the 2010 payroll tax cut die at the end of 2012, but high-income workers now owe an extra 0.9 percent, thanks to the Affordable Care Act. Economists worry about...Show More Summary
This is exactly right, from Justin Green. Cut the payroll tax — Justin Green (@JGreenDC) April 5, 2013 The upshot of today's bad jobs report, assuming the numbers aren't revised massively, is that retail sector is weak, which implies a negative effect from the increase in the payroll tax, which happened at the start of the year. Show More Summary
In January of this year incomes dropped the most they have in 20 years. Let me just allow that to sink in. With the payroll tax cuts expiring...
Packer blames Walmart’s sales decline on the expiration of the payroll tax cut: Last week, Bloomberg News reported that Walmart’s sales in the first days of February were abysmal. In internal e-mails that were leaked, one corporate vice-president described the situation as “a total disaster,” while another asked, “Where are all the customers? And where’s their money?” The [...]
It’s an Obama world. Thanks to the expiration of the two percent payroll tax cut and record gas prices consumer spending was restrained in January. (Wall Street Journal) Reuters reported, via Free Republic: Retail sales barely rose in January as … Continue reading ?
We've heard this one before: "Efforts to finally get rid of that dreaded Medicare payment formula could see smoother sailing [...]" A year ago there were hopeful signs that a permanent fix would be done in the payroll tax cut extension. Show More Summary
Expect the unexpected.
One part of the “fiscal cliff” deal that received little attention was the expiration of the middle class payroll tax cut. The tax increase occurred immediately and hit workers right in the paycheck. While the lower classes may not drive the economy, their spending does have influence.
I fear TPM Reader RC may be on to something... I think it was a mistake for the administration not to make more noise about the expiration of the payroll tax cut....
(Paul Mirengoff) Working Americans have just experienced a pay cut they didn’t expect — the cut resulting from the expiration of the reduction in the payroll tax rate. Like most Americans, the some of the folks who post at the Democratic Underground are not amused. Show More Summary
U.S. job growth dropped slightly in December, "showing that the economy muddled along as Congress fought over tax increases and spending cuts," the Wall Street Journal reports. "U.S. nonfarm payrolls increased by a seasonally adjusted 155,000 jobs last month... Show More Summary
Payroll tax cuts will expire: Taxes will rise on the middle class even if this deal passes, because it doesn’t include an extension of the payroll tax holiday. That means that the paychecks for more than 160 million Americans will be 2 percent smaller starting in January, as the payroll tax will jump from 4.2 percent to 6.2 percent. Show More Summary
The payroll tax cut is no more. If it had been allowed to continue, Social Security and Medicare would be in even more trouble. A 4 percent tax increase on people making over $400K a year isn’t the end of the world, given that Democrats control the White House and the Senate. Show More Summary
New York (CNNMoney) – The payroll tax cut that boosted paychecks for millions of working Americans over the past two years may be on the brink of extinction. As Republicans and Democrats search for a plan to avert a fiscal cliff, it's looking more likely that the payroll tax holiday introduced under President Obama in [...]
We've explained that if policymakers don't extend the temporary cut in the Social Security payroll tax, every paycheck in America will shrink starting next month,...
This is what happens when you saddle businesses with heavy new taxes and mandates for employee health benefits. That plus the certainty that some sort of major tax increases are about to come out of the “fiscal cliff” negotiations equals fewer Americans employed. (CNSNews.com) – A recent poll from the Wells Fargo/Gallup quarterly survey shows [...]Show More Summary
New York (CNNMoney) – Of all the fiscal cliff issues, there's one that scares small businesses most of all: The end of the payroll tax holiday. The tax comes from worker paychecks and funds Social Security. For the past two years, workers have been paying a rate of 4.2%. In 2013, the rate is set [...]
New York (CNNMoney) – In all the rhetorical noise about the fiscal cliff, the discussion has focused most heavily on the Bush-era income tax cuts. Neither party wants to raise income taxes on the middle class, which has come to be defined as families making below $250,000.
Throughout the fiscal cliff negotiations Republicans have insisted on preserving tax cuts for the richest 2 percent of Americans, but have dogmatically opposed maintaing a payroll tax holiday that disproportionately benefits the middle class. Payroll taxes fall harder on those lower down the income ladder and economists believe that allowing 2011?s 2-percent decrease to expire [...]