Reduction in Wages for Everyone of 2% Starting Tommorrow
I just watched the news conference. And unless I missed it, he didn't mention the extention of the payroll tax holiday which reduced the social security tax withholding (SS) of 2% for all employees. That means that your next paycheck will be 2% less.
And in real life....my payroll provider confirmed with me today that the SS withholding is going up on the next check run.
And it should. This was a "holiday"...and as my wife said, holidays don't last forever. All you are doing is taking money from your social security for the future.
What is disturbing is that the average worker will now have more taken out of their pocket each week when they are already strapped with the higher cost of living which is caused by Obama's deficit spending which is enabled by Benarke's money printing. Both of these jokers are killing the dollar which is sqeezing the middle and lower class...the very ones that they are trying to help.
And in a thinly traded day....oil goes up like a rocket....even with real money is about to be taken away from real people.
Won't last....fundamentals (huge supplies of oil in storage, lower demand, more supply coming on line) will hopefully trump a market on morphine.
And, the last time i was self employed i paid the full 15% for Social Security, where the worker paid 7.5 and the employer paid the other 7.5,,,,,, under Bush JR total was only 10.4, 4.2 for the worker and 6.4 for the employer. I always thought Bush did that to break Social Security even when they were struggling under Bush`s Adminatration. That should never of happen that tax cut, and people would have never known it was missing, they would have been happy to keep it at 12.4 instead of it increasing.
Bush can be blamed for a lot of things but not as you described above. He never lowered the employee portion of the social security tax withholding. That was enacted during the recession and started in 2011 on a bi-partisan basis. (long after Bush left office). It dropped the employee portion of the tax from 6.2 to 4.2 for one year.
From a Wall Sreet Journal Article (1/14/11)
Geithner Touts Start of Payroll-Tax Holiday
By MARTIN VAUGHAN And JARED FAVOLE
WASHINGTON—The Treasury Department Friday touted the start of a temporary payroll-tax holiday that will cut taxes for workers by $110 billion this year.
The payroll-tax cut, part of bipartisan tax legislation signed last year, will lower Social Security taxes by $700 on average for U.S. workers, Treasury Secretary Tim Geithner said during a press briefing at the White House.
But many low to moderate-income households have seen paychecks shrink in the first weeks of 2011, despite the new payroll-tax cut.
That's because a separate tax credit, the so-called Making Work Pay credit, expired at the end of 2010. That credit, which was President Barack Obama's signature tax and stimulus policy, gave a larger share of benefits to low and middle-income households.
By contrast, under the new law, a married couple with combined income of $250,000 could see their taxes cut by $4,200 this year.
The measure temporarily lowers Social Security payroll taxes paid by employees to 4.2% of earnings, from 6.2%.
The White House released a fact sheet with scenarios of hypothetical taxpayers. An Ohio truck driver and nursing aide with combined income of $52,500 will get a tax cut of $1,050.
"This is a very substantial increase in the...amount of cash people see in their pockets. And it makes a big difference for struggling families," Mr. Geithner told reporters.
Married couples that earn less than $40,000 are more likely to have a higher tax bill than they had last year.
Many of those are in jobs that pay hourly wages, such as supermarket clerks or teachers' aides, said Roberton Williams, a senior fellow at the Tax Policy Center, a left-of-center think tank.
The group estimated that nearly a third of taxpayers—51 million—will pay more in federal taxes in 2011 than they did last year, because of the expiration of the Making Work Pay tax credit.
"It's a very regressive change. The losers from December to January, the people whose taxes are going up, are predominantly at the lower end of the income scale," said Mr. Williams.
The poor and the 47 million on food stamps could care less about what happens to the better off folk as long as they get their money and benefits fix, obama phone, free food, free rent, free medical care and no need to work.