December 20, 2014

Paychecks are lighter

We’re noticing a change in our paychecks this year, and it’s not a good thing. There’s a significant tax hit, says Wisconsin Taxpayers Alliance President Todd Berry. “The payroll tax reduction that we had seen on Social Security taxes which cut the payroll withholding by two percentage points has ended, so that goes back up to the old rate.”

And it means an across-the-board tax increase, Berry says, and takes more money out of our pockets.

Berry says for those nearing retirement age, the pain might be eased by knowing the money is supposed to be used to help stabilize the social security trust fund.

“The other side of the coin to this is they should be somewhat comforted by the fact that we aren’t seeing this little stimulus raid on the Social Security trust fund.”

AUDIO: John Colbert report :38