Fiscal Cliff avoided for now…. But what about your wallet?!
January 5, 2013 in Business
In the next coming years, there will be only 2 classes in America — the rich and the poor. The middle class in the coming years will be non-existent. It’s proven with the shock of the first pay check of the year. For those that get paid on a bi-weekly basis- although your check is dated for December the money reflects the new FICA tax increase from 4.2% back to its original 6.2% rate. And in the following weeks, Federal government taxes will be increased- according to my HR/Payroll department, they cannot be completely sure until the new bills and laws are signed into effect.
Like any normal, hard-working American the first check of the year is always welcomed especially after all the holiday splurging. However, the check I received today was not at all of what I expected. Yes, my benefit department sent out a letter stating that there would be benefit increases and Federal government tax hikes- but would not start until January 18th pay cycle. So after working hours of overtime and sorting out what bills will need to be paid and what money can go towards the biggest bill of them all—a wedding, I thought I had it all calculated. I was wrong.
The FICA tax by law had to be put into effect starting January 1, 2013. The government did not care that the money was that of which was earned for the month of December, they only cared about when that check is cut—so they can take their part. As I spoke with the nice woman in payroll, she explained to me that because the economy was starting to pick up, President Obama thought that the FICA tax should be done away with. I would like to know where the economy is prospering. Any thoughts or ideas?