Thursday, January 3, 2013
Most Americans will take home 2 percent less money this year due to a Social Security payroll tax increase.
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…
Sunday, December 30, 2012
Tax rate increases and federal budget cuts are set to go into place on Jan. 1 and could cause another recession.
It appears that automatic federal tax increases and budget cuts will occur Jan. 1, CNN reported. The so-called fiscal cliff is a crisis created out of politics. Without congressional action, the Bush tax cuts will disappear and tax rates will rise across the board. According to the National Federation of Independent Business, the 10 percent tax bracket will disappear. Also, the 25, 28, 33 and 35 percent rates would become 28, 31, 36 and 39.6 respectively. A single person with two exemptions earning $50,000 per year will see income taxes increase from $7,103 to $8,551 per year, according to a fiscal cliff calculator published by Bankrate.com. If you want to know the affect on your income, use the Bankrate.com calculator to plug in the …
Thursday, December 27, 2012
If Congress fails to pass an extension of the Bush era tax cuts by midnight Monday, American paychecks will get smaller. You can use the fiscal cliff calculator to see the impact on your paycheck.
With leaders of Congress becoming more and more skeptical a deal will be reached before midnight Monday to avoid the fiscal cliff, it becomes more likely American paychecks will get smaller Tuesday, according to a story in today’s New York Times. “I have to be very honest,” Senate Majority Leader Harry Reid said in the New York Times article. “I don’t know time-wise how it can happen now.” The Senate reconvened today in an unusual session between Christmas and Jan. 1. Even if the Senate passes legislation, the House of Representatives will not come back into session until Sunday barely 24 hours before the deadline, according to a story today on Politico. If no deal is reached, a single person with two exemptions earning $50,000 per year …
Monday, November 19, 2012
U.S. Rep Peter Roskam (IL-06) talks about avoiding the fiscal cliff on CNBC.
U.S. Rep. Peter Roskam (IL-06) Friday appeared on CNBC's "Squawk on the Street" to discuss how to avoid the "fiscal cliff" in 2013. He said House Republicans want to cut spending and avert the cliff, and that the House has already acted on the issues by arguing to extend current rates for a year as a bridge to tax reform, according to a press release. Starting Jan. 2, about $600 billion in tax increases and spending reductions would begin if Congress does not agree on how to implement less extreme measures, according to CNBC. Payroll taxes would increase to 6.2 percent from 4.2 percent, dividends would be taxed as income and estates worth more than $1 million would be taxed at 55 percent, according to a Reuters report. Roskam said the …
Saturday, November 10, 2012
U.S. Rep. Peter Roskam says the fiscal cliff can be avoided, and thinks there is an opportunity to bring Republicans and Democrats together to work on tax reform.
Saturday, November 10, 2012
Barrington area's U.S. Rep. Peter Roskam (IL-06) appeared on CNBC's Kudlow Report Thursday to discuss the fiscal cliff and the House push for tax reform. He said there is a "tremendous opportunity" to avoid the fiscal cliff because of House Speaker John Boehner's comments Wednesday on a willingness to discuss more revenues. "The House has already acted on one proposal that says move forward and extend the current tax rates for one more year, and use that as a bridge to tax reform," he said. "Before there were voices on the Democratic side that were saying, 'Well let’s just go over the fiscal cliff.' Well that’s a bucket of crazy. Nobody wants to go over the fiscal cliff, it’s ridiculous." Roskam said he predicts President Barack Obama …