Wednesday, January 2, 2013

The Fiscal Cliff Deal

TAXES ARE GOING UP!

That's what I've hearing all day from family and friends. Yes some of them make a lot of money but most of us are under the $400,000 range so no need to worry. In a nutshell part of the fiscal cliff deal keeps most tax rates the same but we lost the The Payroll Tax Holiday which was a temporary 2% reduction in social security taxes. Most of us were paying 4.2% instead of 6.2%. For those of you that care, here's how it breaks down:

If you earn $30,000 per year, you'll pay $50/month in taxes.
If you earn $50,000 per year, you'll pay $83/month.
If you earn $115,000 per year, you'll pay $190/month.

Our income is somewhere around $120,000, I put a lot of money in to our 401k and 403b plans. Normally that would equal around $160 less per month which works out to about 40 dollars per paycheck. Now if I remember correctly, public school teachers in Texas don't have to pay in to Social Security so the wife is not impacted. That means my checks will probably have around $50 more or less taken out.

We need tax reform, I guess we have to wait four more years...

HS

7 comments:

  1. It's funny to me that you post about a $50 change in your taxes. How much interest did you pay to Citi this year? One fee is mandatory, one is entirely optional.

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  2. Dude, it's $50.

    How much did you pay in *Totally Optional* interest to your stupid credit card company this year?

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  3. Interest to the credit card for 2012 was probably 500 to 600? I know, it just impacts more when it gets taken out of your check and you get less, make sense?

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  4. HS; no it doesn't make sense. You are living in a great country, the less that you can do is pay your taxes. Your credit card balance is optional, is what you pay for been unable to wait for getting something until having the cash

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  5. HS; no it doesn't make sense. You are living in a great country, the less that you can do is pay your taxes. Your credit card balance is optional, is what you pay for been unable to wait for getting something until having the cash

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  6. OH believe me, we pay a good $15,000 a year, that's not counting property taxes, sales taxes or other government fees like yearly auto registration.

    HS

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  7. I'm going to agree with everyone else, it doesn't make sense at all. The money you pay to your cc company comes out of your checks too.

    Interesting veiled dig at our President...as if the next person will handle a mess like that any better. Get real, there were no easy solutions.

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