Taxes to Rise Despite Fiscal Cliff Deal
Most Americans will take home 2 percent less money this year due to a Social Security payroll tax increase.
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Despite a fiscal cliff deal being reached, working Americans will see less money in their paychecks this year.
A temporary reduction in the Social Security tax was not reinstated by the federal government, meaning our paychecks will shrink by 2 percent.
“When Illinois changed their tax by 2 percent, people really didn’t notice it because Social Security taxes were lowered at the same time,” said accountant David Robbins with Nieminski Robbins and Associates Certified Public Accountants in South Barrington and Chicago. “Now the temporary lowering of the 2 percent is gone so people are going to see less take home pay.”
Robbins explained that the first $113,000 of income is taxed under the Social Security payroll tax policy. This means that a person making $100,000 will see $2,000 less money in their pockets.
“Once you give someone relief and then you take it away, it really bothers people more. Every paycheck you’re going to see it,” Robbins said.
The Senate and House did extend most of the tax breaks enacted under President George W. Bush, but the wealthiest Americans will still take a hit.
“For single filers above $400,000 or $450,000 for married couples, they’ve implemented the new tax rate of 39.6 percent, up from 35 percent,” Robbins said.
Those who make more than $450,000 in capital gains will also be taxed more. Dividends are now taxed at 20 percent instead of the previous rate of 15 percent.
RidgewayVol
6:14 am on Thursday, January 3, 2013
It's Bush's fault.
baokiphoto.com
9:19 am on Thursday, January 3, 2013
Bush implemented the SS tax cut. What the Republicans give the Dems taketh away. Any tax increase on people who make the most money will just show up as less money in the economy for the "poor" to fight over. Get a job, work hard, enjoy the fruits of your hard work. That is the American Way. Or has the Robin Hood mentality become the American Way?
Dennis
9:46 am on Thursday, January 3, 2013
Can't wait for the year 3000, maybe the knuckle heads with shut up about Bush! Seems to me that Zero Started it downhill with the "Public Law American Recovery and Revitalization Act of 2009; Economic Stimulus Act signed by President Barack Obama February 17, 2009" The only people it helped was the state governments that jumped on the band wagon and took most of the money for highway repair, repair that should have been paid in Illinois from Gas Taxes, that are the fifth highest in the country.. For what? It only jump stated work in the blacktop factories and trucking firm.. What we need it IDOT to stop the stupid waste, this summer RT 25 by me was repaired by NON-IDOT, patches only of course. a few weeks ago four big trucks and on pickup were driving north and only one truck had blacktop, not even enough to do my 60X30 driveway. Of course the last huge truck does NOTHING, it has a bumper on the backend to protect the crew, at ten miles an hour. I have taken pictures of the waste and it is on flickr, like the crew that did a 100'X30" band in front of a car dealer that is no longer there on OLD Highway14... So much for living in a Democratic State
Harry Gio
6:34 am on Thursday, January 3, 2013
Taxes seem to ALWAYS go up, up, up in Illinois, especially "CROOK" County...
Harry Gio
6:39 am on Thursday, January 3, 2013
The perfect way to deal with these outrageous tax hikes is to live 6 months in Illinois and 6 months in Florida... It won't be much of a savings, but you're sure to have fun and a great suntan from November to April.
Dennis
9:51 am on Thursday, January 3, 2013
Close, but I don't like the expense of traveling, why not send the State Congress down there for all year and cut the lines of communication!
Tony
8:46 am on Thursday, January 3, 2013
I can't imagine anyone being surprised.
Another example of that hope n' change.
RidgewayVol
9:18 am on Thursday, January 3, 2013
And no comment from the 99%ers. Sucks to have your taxes go up when you think you already pay more than enough doesn't it? Here's a little salt in the wound, most of us paying an additional 2% into the SS Trust Fund will never see that money again. Have a wonderful day!
Tony
9:39 am on Thursday, January 3, 2013
I don't blame the prince of fools. I blame the fools who are willing to have him for their prince.
Dennis
9:55 am on Thursday, January 3, 2013
Your right not to blame the prince of fools, you have to add the 535 other fools that float in the boat that is going to run aground and they will blame the companies that refuse to deal like they want.. Those that voted have nothing to lose except their welfare state.. Tin Man gives the favorite wording to this mess,..."If I only had a brain"
McCloud
9:02 am on Thursday, January 3, 2013
What is a fiscal cliff? Seems to me we fell off of it 4 years ago.
Tony
9:05 am on Thursday, January 3, 2013
The historic plunge and freefall.
Prepare yourself for impact.
Dennis
9:57 am on Thursday, January 3, 2013
Yes you right, it was four years ago, the same time my Son-in-law and family moved in with me, because of Wasteington Debit Capital.. This is the un-rebound, the second bounce you feel going down hill
RB
9:51 am on Thursday, January 3, 2013
Two Wars and a prescription drug plan, all not paid for by Mr. Bush. In fact, he lowered revenue causing this crisis to worsen. We have skated for years funding a Defense Department that is too bloated. The Republicans finally passed the farm bill without removing $5B in subsidies that both parties had agreed to remove. How about outrage about that? You can't have your cake and eat it too. They won't dare cut Defense spending because the war machine was smart enough to spread the production into all these taker States that need the jobs. If you want lower taxes talk about getting us out of Wars and cutting back on the Defense department and farm subsidies or you could move to Alabama or Florida and buy your Assualt rifles, put them on your trailer wall right over your fake leather couch. Hunt squirrels, and be a part of a taker State if you hate Illinois so much. You don't have to live here, last I saw we don't have you fenced in.
Don't you get it? Most Republican Congressmen are so married to Corporations, ideology, and the NRA that they hypocritically say cut spending but they are afraid to say what. Now, it's up to them to expose their hand. Just what are they willing to cut?
McCloud
10:02 am on Thursday, January 3, 2013
Lets get rid of the prescription drug program, after all it was passed without one Democrat vote. Wait, that was obamacare.
G.G.
10:47 am on Thursday, January 3, 2013
Actually, congress approved the actions in and funding for "two wars and a prescription drug plan".
I agree subsidies to farmers, green energy automotive companies and all other industries needs to go away. The government shouldnt be picking winners and losers like that.
As to the spending on defense though, it's the only thing you mentioned that the government should be spending money on. It's mandated in the constiution, and it should be the primary focus of the federal government. All the other "giveaways" like food stamps, housing subsidies, and (due to poor management) social security, medicare, and medicaid re things that we can choose as a society to spend any "extra" money on. But there is no "extra" money. This country is broke, and ALL the entrenched politicians have been corrupted by promising things to people with OUR tax money (it's really buying votes). To say that this is a republican issue shows that your opinion isnt really based on informed thought.
cynthia
10:42 am on Thursday, January 3, 2013
President Obama walked away from the negociations without a single cut in spending. We are fools to let this go on and on. What has been cut is money going to our University reserch programs where we used to lead the world in finding cures for disease. For a fraction of what we spent on the war in Iraq and Afganistan we could have the cure for cancer. Try walking into a childrens hospital and looking in the eyes of those kids fighting for their lives knowing that we have cut the funding to find cures for them. Both sides make me sick.
I am stuck in Illinois or I would be gone from this sancutary state. Couldn't sell my home of 1/8 th of what I have into it. But hey, lets let the Dems continute to foot the bill for the gang bangers, drug dealers, illegals of all sorts sucking off the system. After all anyone with a successful business didn't earn it.
Dan Arenov
10:51 am on Thursday, January 3, 2013
We won't be complaining about illegals soon.
Obama is ready to reward them for breaking our immigration laws by making them instant citizens.
I wonder if our gov't will continue to run tv commercials down in Mexico advising Mexicans how to take advantage of our food stamp and welfare programs in the USA?
Dan Arenov
11:03 am on Thursday, January 3, 2013
The labor participation rate for men is the lowest it's been since they started keeping stats on this back in 1948.
Millions have quit from the workforce in the last four years due to not being able to find work.
Millions more have gone on permanent disability. More than ever.
Instead of getting tax revenue from these former workers, we now are paying for their well being. Paying the food bills for their families, etc.
The math is horrific. We can tax the rich at a 100% tax rate and it's not going to change anything...and you can only do that for so long, as Maggie Thatcher astutely pointed out.
...and to think that the 'recession' ended over two years ago. That makes this a recovery? If our economy were a patient, these years of recovery would be taking place in a bed. in a coma. in traction. That's where we're at.
Bob Stock
11:06 am on Thursday, January 3, 2013
Quite frankly I don't believe the "payroll" tax should have ever been eased, it's sole purpose is for Social Security and Medicare and not part of our general operating expenses.
To those who think GWB instituted this cut, you are very wrong.
william brown
11:58 am on Thursday, January 3, 2013
Solution
Raise the cut off
And SS is not a tax
Unless you consider insurance a tax
McCloud
12:13 pm on Thursday, January 3, 2013
Got to keep the Ponzi in the scheme. keep it coming.
McCloud
12:36 pm on Thursday, January 3, 2013
Sure, the Feds have urinated away trillions and trillions of our hard earned money, but this time, yes, this time they will get it right. Lets give them more.... Good grief, some folks really deserve this cliff dive we are in for.
GL Resident
1:44 pm on Thursday, January 3, 2013
Simple math. For every dollar government takes away from my paycheck, I will have one less dollar to spend on local stores, restaurants and charities. So we will continue to see local businesses go out of business which in turn will raise our property tax shares to feed the bloated union-controlled schools and public pensions. It is a vicious cycle that is beyond the capabilities of our elected officials to understand and control.
McCloud
4:16 pm on Thursday, January 3, 2013
When does the debt get paid down with all of this new revenue?
The Q
6:52 pm on Thursday, January 3, 2013
Never......tax and spend