If you are employed, here is an easy way to save for Christmas

[MrsPete]

Beyond the immediate "I will have more money" idea, remember that Social Security is already near-dead. If they will now have even less money to use to pay out benefits, this makes it even less likely that any of us 50 or younger (totally guessing on that age) will ever see any return on what we've already paid in.

This is one more hint that we'd better all be preparing to support ourselves in retirement. The safety net has looked risky for some time now, and this makes it look even worse.

 

[MrsPete]

I hadn't heard that. It won't affect my pay, I'm a teacher. But, I am surprised, since they are always saying SS is in trouble. How will they fund it?? Just wondering, because it will affect my husband, he pays into SS.

Not all teachers are exempt from Social Security TCDD. I pay into BOTH Social Security and the state teachers' pension plan.

 

[Swimalie]

That really hurts some federal employees (about 20% of feds). No pay raises for the next two years. As mentioned, this replaces the Making Work Pay Credit, so that's an additional $400-$800 tax increase. But they don't get the SS tax cut.

Full disclosure. I'm a federal employee. However, I pay into SS, so I do benefit from the SS tax cut.

I hope you don't fall under the 10% reduction in force. They haven't told all offices to tell their employees yet. My husband was one of the first to get his notice. We pay in to social security too so we'll see the break but it could disappear in March along with his pay check I can handle the lack of pay raise for 2 years but not a total loss of job in this area of the country.