What are you cutting in your budget to absorb the Payroll Tax increase?

[lilpig]

What we need is for people to take a personal responsibility for knowing what the government is and isn't doing. If you were doing that, you would be well aware that it was a temporary decrease in the SS contribution. It was all over the news when it was first passed, when it was passed again at the end of last year, and for the last 6 months.

People need to wake up and pay attention. Watch the evening news, read some other newspapers or websites. Not once in awhile, every day. Ignorance is no excuse. And no, I won't give you sympathy because you chose to be ignorant.

My statement clearly states I received the information on the news. You do not know me, my reading habits or political views and my knowledge there of. Just the little "blurp" I made about this "holiday tax". Calling one ignorant is unacceptable when you do not know them. I said empathy not sympathy.
Empathy:the action of understanding, being aware of, being sensitive to, and vicariously experiencing the feelings, thoughts, and experience of another of either the past or present without having the feelings, thoughts, and experience fully communicated in an objectively explicit manner;

I also was not asking for it for myself, I was asking for others. Its so easy to say rude things to people from a computer. Kindness is a choice. More should try it.

 

[crisi]

I agree! Sure, some people do it by making more of an effort to make it a priority and others do it easily, but I assume they can do it without putting themselves on the edge of making it.

Our tax liablity is going up what feels like "considerably" to us, but it will just mean less extra spending or less savings. It kind of rolls into all the other crazy expenses we've got right now with our second child about to enter college. Our budget really isn't firm enough to categorize where that money will come from, and we aren't making specific plans because we've been purposely living beneath our means, we'll just spend less because we only spend what we have.

And from your signature, you went twice in ten years - a little longer even. Now, would it shock you to learn someone who has made the trip every year per their signature during those ten years is less impacted by the tax liability and has either a lot of income, or a high net worth, or both? Not if you are starting from the assumption that most people taking a lot of trips can afford them - it might be a stretch to go every year, but - unless they live close or have some other factor going like relatives paying - they pretty much by definition have at least several thousand dollars a year completely disposable to fritter away on vacations.

 

[Tinkerbellie16]

When they introduced the temporary tax cut a couple years ago, I increased my savings by the same amount. Now that it is back to normal, I am going to try to maintain that but if it isn't possible, I am just grateful I had the opportunity to do it temporarily. So where will it hit us? Our savings. But even without it, we save 25%. I've been saving like this for almost 15 years now so I don't notice it "gone" from my monthly net pay.

 

[chicagodisneyfan]

I got a $5,000 raise on 1/1, so I will not have any decrease in my check - in fact it will still go up. So no issues here.

 

[luv2mickey]

If this 2% increase has hurt you then please do what you can to get your finances in a more comfortable place, I believe we will be seeing more taxes and the prices of goods will be rising.

 

[nunzia]

My pay will go down quite a bit..third year of salary freeze, plus my share of medical insurance goes up, and the SS tax holiday (and how stupid was it for the gov't to put less money into a failing system?). We are creeping up on retirement age, so this year I am doing an experiment to see if we can cover basic living expenses on SS taken at 62..our savings will be used for trips and extras...that's how I planned it..years ago I heard a financial guy say that you should be able to live on SS and then only pull your savings for incidentals and emergencies..so, trying that and then putting all the rest in savings. We are debt free so bills are insurances (ouch) utilities, charity and food/gas/entertainment. We buy a lot of gifts for our huge family, so don't know where that will come from..work in progress. It may be worth it to just retire and use savings for awhile to delay drawing SS to get a higher monthly draw..just don't know. Anyone know a good site with various SS scenarios?

 

[vacationer1954]

I just got my first paycheck. SS did go up but not by a full 2% and all the other taxes went down significantly because I'm putting a lot more away for retirement now.

 

[leahjade]

I was saddened to read in the Sunday paper about some of the wasteful spending in this bill such as
$46 million for motor speedways that allows NASCAR track owners to deduct everything from the bleachers to concession stands and track maintenance, too - zoom, zoom;
$199 million worth of tax breaks for rum makers and rum production - big liquor must be sponsoring the post- deal parties or cocktail hours on the Hill considering that's a $13 per gallon kickback;
$38 million more in tax breaks for companies doing business in American Samoa;
A 10% tax break for everybody who buys an electric scooter or car up to $2,500 max
$15 million in tax breaks for movies filmed in America and $20 million if they're filmed in low- income regions. According to USNews, that's a "Hollywood incentive that costs the country about $430 billion to maintain."
$59 million in tax breaks for algae growers who are trying to turn green slime into bio-fuel.
The CBO says the budget agreement will lead to an overall increase in spending of about $330 billion over 10 years. So nothing has changed and we are in no better shape than before just poorer in week in our paychecks!

 

[JDUCKY]

considering it was designed to be temporary only, well, not cutting back on anything really. Just taking the hit (but a new job I started with better pay helps with that...I'm lucky in that respect)

 

[mickeygaga]

At some level I'm an optimist. I hope that most people here are here because they are Disney fans indulging themselves in a hobby they can afford. Not addicts feeding an addiction that is having a negative impact on their external lives. So I hope that MOST of us with multiple trips under our belt are fans - and I know there are a few addicts - I suppose I'm just as naive, but in the other direction.

And because I can be naturally frugal myself - I don't assume anyone trying to feed their family for $100 a week or making homemade laundry detergent while going to Disney is doing it from necessity (I've done both) - that sort of frugality is a hobby activity for me.

Well said!!

 

[bettymae1121]

Nothing. We are just about finished with our home remodel and the $500 a month we normally budget for that will more than cover the $200 difference in our checks.

 

[robsmom]

I got a $5,000 raise on 1/1, so I will not have any decrease in my check - in fact it will still go up. So no issues here.

Congratulations. It is so nice to hear positive news for people. Gives hope that things will continue to improve.

 

[joedplumber]

Luckily me and my DW got year-end raises effective January 1 that were greater than the 2% tax holiday ending.

So we don't have any plans on cutting any costs.

The real raise comes in August 2013 when my DS finishes day care.

 

[4HppyCamprs]

Congratulations. It is so nice to hear positive news for people. Gives hope that things will continue to improve.

Congratulations and it is nice to see positive news in regards to raises.

 

[Shanan]

Whenever the initial Payroll Tax was started, we did not count it in our budget at all. We always have to pay IRS in April (DINKs). So we would apply that additional money to our federal Income tax. I did remove the additional money from W-9 in December. While everyone is planning their household budget, I say start calculating the cost of the additional taxes to fund ObamaCare. So there will be no 'surprises' in 2014.

If DH & I have to live within a budget & adjust for less money coming in (i.e. Payroll Tax Increase) then why can't our Congress do the same thing.

leahjade I was saddened to read in the Sunday paper about some of the wasteful spending in this bill such as
$46 million for motor speedways that allows NASCAR track owners to deduct everything from the bleachers to concession stands and track maintenance, too - zoom, zoom;
$199 million worth of tax breaks for rum makers and rum production - big liquor must be sponsoring the post- deal parties or cocktail hours on the Hill considering that's a $13 per gallon kickback;
$38 million more in tax breaks for companies doing business in American Samoa;
A 10% tax break for everybody who buys an electric scooter or car up to $2,500 max
$15 million in tax breaks for movies filmed in America and $20 million if they're filmed in low- income regions. According to USNews, that's a "Hollywood incentive that costs the country about $430 billion to maintain."
$59 million in tax breaks for algae growers who are trying to turn green slime into bio-fuel.
The CBO says the budget agreement will lead to an overall increase in spending of about $330 billion over 10 years. So nothing has changed and we are in no better shape than before just poorer in week in our paychecks!

 

[Cheshire Figment]

If you will be losing $200 per month this means your annual salary is $120,000!

Look at the math:

$120,000 Annual Divided by 12 means Monthly Salary is $10,000.

$10,000 x 0.02 (2%) = $200

 

[luv2mickey]

If you will be losing $200 per month this means your annual salary is $120,000!

Look at the math:

$120,000 Annual Divided by 12 means Monthly Salary is $10,000.

$10,000 x 0.02 (2%) = $200

So!!!!! What does this mean!

 

[Marionnette]

If you will be losing $200 per month this means your annual salary is $120,000!

Look at the math:

$120,000 Annual Divided by 12 means Monthly Salary is $10,000.

$10,000 x 0.02 (2%) = $200

But the Social Security salary cap is set at $113,700 for 2013. Anything above that amount isn't subject to the 6.5% tax. If the PP is losing $200 per month it must be because there are two or more earners being affected.

 

[crisi]

But the Social Security salary cap is set at $113,700 for 2013. Anything above that amount isn't subject to the 6.5% tax. If the PP is losing $200 per month it must be because there are two or more earners being affected.

Or they are estimating, or their initial data was wrong, or there are other factors at play that they aren't mentioning, like increases to health insurance. What it does mean is that even in high cost of living areas, anyone loosing $200 a paycheck isn't on the verge of starvation due to the increase.

On the other hand, someone making $20k a year sees a $33 a month loss, which is s big deal on a very tight budget.

 

[dawnball]

But the Social Security salary cap is set at $113,700 for 2013. Anything above that amount isn't subject to the 6.5% tax. If the PP is losing $200 per month it must be because there are two or more earners being affected.

If you make $120,00/year, you'll see a $200 decrease in your net check in January. Then when you hit the threshold, your take-home will go up by the 6.5% that was previously being withheld.