So the shakeout from the fiscal cliff hits first today for me, with my first paycheck of 2013. You'll have to trust me when I say that it's 2.9% lower; I can't quite figure where the difference is, but it's mostly under the Social Security line item on my paystub, because the payroll tax cut has expired:
Workers’ share of the Social Security payroll tax, which had been temporarily cut from 6.2 percent to 4.2 percent for two years, was immediately snapping back to the higher level.
The result is smaller paychecks for all wage earners, with the country’s economic recovery still sluggish and unemployment stubbornly high. A worker making $50,000 in 2013 will take home $38.46 less per two-week paycheck, or $1,000 per year.A look back tells me that I didn't expect the payroll tax cut to be extended, and I was wrong. Well, I guess my payments to my bookie will be a little lower this month. (kidding kidding) Here's hoping that the extra money is going straight into some pharma retiree's pocket for a job well done.