Payroll Taxes Forces Taxpayers to Reconsider Spending

Last updated on January 14, 2013

Everybody is unhappy with increased payroll taxes; those who have received a lighter paycheck are more so. For a family earning $50,000 a year, the new taxes would mean a reduction of about $40 per month. Although it does not seem like a large amount, it does mean less money to spend.

Taxpayers are complaining about the increased taxes and sharing their views on social networking sites. On Twitter, #WhyIsMyPaycheckLessThisWeek was a trending topic. People are also questioning whether paying more taxes will resolve the economic problems that the country is facing. Some are finding it hard to pay for Social Security benefits, when they believe they will never use them.

The Bush administration initiated a two-year tax cut on payroll taxes to fund Social Security, which the Obama administration extended. The cut expired in 2012, thus payroll taxes have gone back up.

Around 160 million Americans pay payroll taxes. The rise in payroll taxes is seen as a discouragement by some workers. With the talk of fiscal cliff getting intense, taxpayers are not in a happy mood. However, taxpayers know increased taxes are here to stay, and they are reconsidering ways to make changes have the least affect on their lives.