Columbus, OH-
By ANUK Staff
1.17.13
Across America, working professionals are noticing that their first paychecks of 2013 aren’t quite what they were last year. Due to the expiration of a two-year tax holiday, taxpayers are experiencing a two percent FICA tax hike as the rate returns to 6.2% from 4.2%, according to PR Newswire.
For workers with an annual income of $30,000, take-home pay will decrease by $600 per year. Those making $50,000 can expect a loss of $1,000 while those making $100,000 will bring home $2,000 less.
"While two percent may sound like a modest increase, the toll it takes on discretionary spending is much greater," said Chief Marketing Strategist at Residential Finance Corp, Barry Habib. “Consider a couple in which each partner earns $45,000 per year, earning $90,000 combined. They will likely pay $26,000 in taxes, and their living expenses may be in the range of $46,000 a year,” he explains. "That leaves a couple earning $90,000 in combined income with $18,000 in discretionary spending. A two percent tax hike resulting in $1800 less per year will feel more like a 10 percent reduction, as they're losing 10 percent of their discretionary income," Habib said.
