Social Security Tax Impacting Paychecks

By: Candace Barnette
By: Candace Barnette

Many were surprised to find their paychecks lower than usual on Friday morning.

This is the first pay period since the increased social security tax went into effect. Congress lowered social security taxes by two percent in 2010, but that temporary decrease has expired, and congress opted not to keep that tax cut with the fiscal cliff bill. Many citizens are worried about the effect a two percent increase could have on the lower and middle classes.

"It's gonna hurt," barbershop owner Bill Gordon says. "It's gonna hurt. Especially people on a fixed income, you know, and making minimum wage. That's the people I feel sorry for. "

A two percent tax increase is $1,000 for someone who makes $50,000 a year. You can expect to see this increase through the rest of the year.


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