What am I missing with the payroll tax increase?

Discussion in 'Budget Board' started by Suz D, Jan 19, 2013.

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  1. Kathi OD

    Kathi OD <marquee><font color=blue>The first person to repl

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    I hate to tell you, but if he had $426 taken out of one pay and he gets paid twice a month, that's $852 per month...not $700.:crazy2:
     
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  3. ilovemk76

    ilovemk76 DIS Veteran

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    OP, you are not missing anything.
     
  4. DisneyATlast

    DisneyATlast Mouseketeer

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    Of course people can moan all they want. Just don't be surprised when someone is wondering why. It'd be like someone complaining to a homeless person that their house is too small.

    People probably shouldn't live so that a 2% difference in income is going to change their lifestyle anyway.
     
  5. ajh88

    ajh88 DIS Veteran

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    People do a lot of things they probably shouldn't do. Somehow I don't believe that the ONLY people commenting on the impact of the increase are ones who earn a "high income" (which I don't) - but again, maybe that links to the other thread. I guess when my income was around $50K, it was easy for me to look at someone making $150K and think, man, I'd have it so easy if I made that much money and they must never worry about money. In reality, I now know that I don't worry about money in the same way that I used to (like, can I pay my bills?), but I do still worry about it (like, am I saving enough for my DD's education, for my retirement, etc?).

    But I will fundamentally agree with you and the OP - I wouldn't assume that a 2% "increase" in taxes would really make a catastrophic difference in the day to day lifestyle of a family earning between $150K and $200K a year. :flower3:
     
  6. preschoolmom

    preschoolmom DIS Veteran

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    Who says that? :confused3:sad2:
     
  7. rsschneck

    rsschneck <font color="lime">DIS Party Bus Queen </font>

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    Wow! Very offensive statement.
     
  8. snarlingcoyote

    snarlingcoyote <font color=blue>I know people who live in really

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    I wish the government had never given us a tax break, to be honest. I keep hearing people grumble about it as though they had never paid payroll taxes at this rate in their entire lives. It was supposed to be a short-term thing to stimulate the economy. What part of that did people miss? :confused3
     
  9. DisneyATlast

    DisneyATlast Mouseketeer

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    I've heard it several times throughout my life, but I remember specifically the first time I heard it was several years ago when I was working as a waitress and there were certain "rich" customers who were notorious lousy tippers.

    We'd all complain about this one rich man in particular who would come in regularly, get great service, and leave $1. I mentioned this on another thread awhile back. It's definitely not always true, but in general we would all agree that it was the average Joe's and the dirty construction workers who were the best tippers. There was another man who would break out his "tip calculator" every time. Yes, tips are based on the amount of the bill, but most people don't take that so literally that they break out a calculator if they order a soda instead of a water. Maybe people who are living in a way that 2% makes a big difference do though.
     
  10. DisneyATlast

    DisneyATlast Mouseketeer

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    If it doesn't apply to you then I don't know how it would be offensive. Obviously not all or even most rich people are greedy, but if you are rich and greedy then I think it's a pretty fitting and funny saying.
     
  11. DisneyATlast

    DisneyATlast Mouseketeer

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    After doing a quick Google search, I think it may have originated here. Not sure.

    "Homer complains to Marge that everyone except the Simpson family are getting rich off the Internet, and he wants a piece of the action, despite knowing nothing about it. He launches his own dot-com company, Compu-Global-Hyper-Mega-Net, which is later bought out by Bill Gates and his goons. Unfortunately, Bill Gates' "buying out" procedure is having his goons destroy Homer's office and break all of his possessions, stating he "didn't get rich by writing a lot of cheques".
     
  12. zxrst

    zxrst Earning My Ears

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    $300 a month might not be that much but if you can put the money in a mutual fund like Fidelity index 500, which averages 9.5% return yearly since inception, you would have had $610K in 30 years! Even if you take a more modest return (6%), you would still come out with $310K.

    The other problem with all these tax increase is that the cutoff brackets are not inflation-ajustable. A 60K job in 1992 would pay you 100K right now based on the inflation adjusted buying power. Majority of the middle class families would cross the top bracket in the next 20-30 years.
     
  13. rsschneck

    rsschneck <font color="lime">DIS Party Bus Queen </font>

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    I'm not a minority but racism offends me. I'm not gay but anti-gay comments offend me. People in glass houses should not throw stones. You are making a huge accusation about people that you don't know and that is offensive.
     
  14. DisneyATlast

    DisneyATlast Mouseketeer

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    I don't really care if someone who is rich and greedy to the point that they feel they should be exempt from taxes is offended.
     
  15. diz4ever

    diz4ever Mouseketeer

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    And it's not only those that make the most are the ones complaining. A lot of people forgot that the 2% was temporary and that along with increased health costs hits everyone. You tend to make sweeping generalizations which is offensive whether its about "rich people" or any other portion of society.
     
  16. vacationer1954

    vacationer1954 DIS Veteran

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    Tax brackets and other features of the tax code are indexed to the Consumer Price Index.
     
  17. bdcp

    bdcp DIS Veteran

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    I agree. Not true. Most wealthy people are very generous. Just because they're not giving to the poster you quoted doesn't mean they're not giving. I see it.

    We are a two income household who is "losing" $300/month. DH hits the threshold every year. I do not. We live in a high cost of living area. Here's the example I give: If we lived in Omaha and make what we make, we'd be living like we were wealthy compared to our neighbors. We live in the DC area, so while we live well, we are not living like that. What we have took years to get to. We're 52 and 55. Of course, people forget age, education, work experience all figure into salaries. We haven' always made that much. In fact, I was a SAHM mom for 14 years living on a very tight budget.

    Fortunately, with us both working, we have a cushion and while we see the $300 less/mo, we really don't feel it. Now, if we were living on DH's salary alone, the $200/mo that would be coming out of his salary would be noticed a lot more. We do our best to live on his salary and play/save mine.
     
  18. DawnM

    DawnM Dawn

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    If the cap is $113,000, then the most people will pay is $188.33 per month more, correct?

    People are reporting more than that and saying they are seeing $300-$800 taken out of their checks.

    There is something wrong then if you are seeing more than that amount taken out.

    My husband is an accountant. He is on a backpacking trip in the mountains at the moment without cell service or I would ask him about it.

    But I am not quite understanding those of you reporting higher numbers than should be taken out. There is something not right.
     
  19. thedonduck

    thedonduck DIS Veteran

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    I think people are adding in cost of healthcare going up, etc. for the amount. Just my guess.
     
  20. Marionnette

    Marionnette <font color=deeppink>Wishing On A Star<br><font co

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    For people who earn more than $113K annually, their SS tax will be at a rate of 6.2% until they reach a point where they have paid approx. $7K into the fund for the year. After that, their SS deductions go to 0% for the remainder of the year.

    The Medicare payroll tax has no income cap. So that amount remains constant throughout the year. It only increases if the amount of the paycheck increase, such as when you work overtime or get a bonus.
     
  21. vacationer1954

    vacationer1954 DIS Veteran

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    This might be happening because people are comparing their first paycheck of this year to their last paycheck of last year when they hit the limit and therefore paid much lower SS tax as a result. If they would go back on more paycheck they'd see the mistake they made in the comparison.
     
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