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Fiscal Cliff Lowers Paychecks
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Sunny And Hot Conditions Continue 5/17/13
Sunny skies and hot temperatures are expected through much of the weekend. Record heat is possible today.
Sunny skies and hot temperatures are expected through much of the weekend. Record heat is possible today.
Fiscal Cliff Lowers Paychecks 1/2/13
Ashley Melnick
amelnick@cbs7.com
CBS 7 News
January 2, 2013
West Texans may be breathing a deep sigh of relief Congress did not go over the fiscal cliff, until they see their next pay stub.
While the tax package, which passed on New Year’s Day, will protect 99 percent of Americans from income tax increase, 100 percent of working American will see a drop in their paycheck.
Back in 2011, President Obama pushed for a temporary reduction to the amount of payroll taxes workers must pay, known as the tax holiday, from 6.2 percent to 4.2 percent.
Now, those reductions have expired, and the holiday has ended.
Across the board, employed Americans will see two percent less in their paycheck.
This means a household making $75,000 to $100,000 a year will see about $1,200 less in their paycheck.
And someone making $50,000 to $75,000 will see about an $800 drop.
Money expert Mickey Cargile with Cargile Investments said despite the shock workers may feel when they see their next paycheck; local businesses will maintain their benefits.
“From a local perspective, business taxes didn’t change,” said Cargile. “So for our local oil and gas companies, they will continue to write off tangible drilling costs.”