If payroll tax cuts are not extended for next year how iwll that affect you?

[imagine]

We were watching pbs news last night.
They were mentioning the tax cut have not been full extended. They also said that the average amount would be around $40 a week that would start coming back out of the check each week.

They then mentioned how people said it would affect them. Hubby and I exchanged looks of stress. I did not hear what the answers were.

But Buddy started saying about giving up eating and giggled. I said "it is not a laughing matter for some it might mean that, to an extent". He said "I know". I guess he was listening to the answers come gave on the news program.

So how would that affect your wallet?

I'm a bit nervous to think about what it would mean to ours especially with our health insurance going up this year.

[frugalwarrior2]

Well. At about $2080. That looks like it will nicely eat the $2600. we are helping DD w/ Community College. And seeing we can't write off anymore after this year,and she can't find a job to save her soul. Well,that just sucks! I already have the other one taking out loans from now on. Community college may require loans for us-so sad.

[McD]

We were watching pbs news last night.
They were mentioning the tax cut have not been full extended. They also said that the average amount would be around $40 a week that would start coming back out of the check each week.

They then mentioned how people said it would affect them. Hubby and I exchanged looks of stress. I did not hear what the answers were.

But Buddy started saying about giving up eating and giggled. I said "it is not a laughing matter for some it might mean that, to an extent". He said "I know". I guess he was listening to the answers come gave on the news program.

So how would that affect your wallet?

I'm a bit nervous to think about what it would mean to ours especially with our health insurance going up this year.

I'm not sure of Buddy's age, but sometimes kids don't know how to respond to frightening things so they act inappropriately. I remember being told that my aunt's house burnt down and I laughed. Not because it was funny, but because I didn't know what else to say/do.

It wouldn't have to much of an impact on our budget right now, but when school is out and both kids are in daycare again, it would certainly be helpful to have the 40 extra per pay period.

[McD]

Well. At about $2080. That looks like it will nicely eat the $2600. we are helping DD w/ Community College. And seeing we can't write off anymore after this year,and she can't find a job to save her soul. Well,that just sucks! I already have the other one taking out loans from now on. Community college may require loans for us-so sad.

When you put it like that, well, then holy moly. That would pay off almost half of my remaining car loan.

[brennasmom]

So, if you are a dual worker household is that $2080 each person?

[Handy Andy]

If you make $106,000/year (the max amount of your income subject to SS/Medicare/Medicaid tax) then the 2% equals $2120 per year. Broken down into 52 weeks a year it is approximately $37.86/week.

If you make $50,000/year it breaks down to approximately $19.23/week.

I find it odd that PBS gave the $40 example , which would be the max amount "extra" any one person would pay. (I put extra in quotes because the rate would revert back to orginal rate it was prior to the one year holiday.)

They should have explained how the weekly amount was figured out or given examples from all income ranges. There is no need to scare people or make them think they are going to pay more than they will in reality. Really, does PBS think people need even more stress added to their lives? Good grief.

I am not trying to minimalize the impact of $20 (every bit helps is what frugal village has taught me), but I would think owing $20 sounds a lot better to most than $40!

[pollypurebred39]

That's funny, because the breakdown I saw this morning said that it was $50,000 for $40. They had breakdowns of higher and lower income brackets also, but I glazed over.

I wish they'd stop all this bickering and just extend the tax cuts already. "For everyone to whom much is given, of him shall much be required." -- Luke 12:48. I think the ones (the elected) that love to spout Christian values when it benefits them need to be reminded of this verse.

[Telephus44]

Honestly, it didn't affect us too much to have it in our checks, so it won't affect us too much to not have it in our checks. I'd rather have social security more secure for those who truly need it than the extra $40 a week (we do make over $106,000 combined).

[imagine]

I'm not sure of Buddy's age, but sometimes kids don't know how to respond to frightening things so they act inappropriately. I remember being told that my aunt's house burnt down and I laughed. Not because it was funny, but because I didn't know what else to say/do.

It wouldn't have to much of an impact on our budget right now, but when school is out and both kids are in daycare again, it would certainly be helpful to have the 40 extra per pay period.

Buddy will be 15 next month.

[imagine]

Here is an article that states some of the tweets then the government posed this question to the public.

Payroll tax cut standoff's impact: What $40 a paycheck means to you – This Just In - CNN.com Blogs

[MomToTwoBoys]

The lack of extension of payroll tax cuts is, essentially, a good thing.

It may not seem like it, but trust me, it is.

With 53% of Americans paying income tax, the money has to come from somewhere. The government cannot keep pulling money from sources that are lacking funds in the first place. This causes the US Treasury to print more money and as such, the value of the dollar continues to plummet (along with its performance on world markets and such).

When the government has to print more money, thus decreasing its value, the price of goods goes up to recouperate that loss.

An increase of even $20 a week will do a world of good to help keep the government running at least better than it was.

So logically, the payroll tax extension is a bad, bad thing for finances for everyone... including the government.

[Handy Andy]

mmmm....

Now that i think about it, it would be $40 every PAY PERIOD, not week if you make $50k. That might be where the discrepency is. Some us are talking about weeks, some pay periods.

Either way, at this point SS is massively underfunded, and IMHO the "holiday" should never have been given in the first place.

[imagine]

I find it odd that PBS gave the $40 example , which would be the max amount "extra" any one person would pay. (I put extra in quotes because the rate would revert back to orginal rate it was prior to the one year holiday.)

They should have explained how the weekly amount was figured out or given examples from all income ranges. There is no need to scare people or make them think they are going to pay more than they will in reality. Really, does PBS think people need even more stress added to their lives? Good grief.

They were actually talking about the Whitehouse asking the American people "What does $40 a paycheck mean for you and your family?" They then went on to mention the payroll tax as well as other incentive and unemployment that are due to expire at the end of the year.

http://www.whitehouse.gov/blog

Here is another article about the question
White House asks what $40 dollars means to you - CNN.com

[227melissa]

We've only gotten about 40 a month. Where is this money coming from? Doesn't take away from medicare and SSI ?? I say ditch the 40 dollars and start working on paying off that 15 trillion dollars debt the country has. This is just another distraction from our government so we won't see the mess we are really in.

[pollypurebred39]

Hmmm...My bad. I mistakenly believed the money from this tax cut was being funded from elsewhere.

This was a Bush thing, huh? and now supported by Dems. I have to wonder what the vote for this looked then.