HIGH POINT, N.C. — The Payroll Tax Hike from 4.2 percent to 6.2 percent in 2013 is making most working Americans paychecks smaller.
High Point University Professor Martin Kifer said the hike comes from the decision between Congress and President and Obama not extending the tax reduction.
“Since their deal did not include a continuation of that reduction people are going to see their paychecks or at least the reduction from their paychecks go up about 2 percent,” Kifer said. “We pay that payroll tax to support current beneficiaries in the social security program.”
Americans who make more than $105,000 a year will get that same dedication rate as 2012 of 4.2 percent.
Greensboro resident Marcia Moyd-Williams said 20 dollars here and there can add up, forcing her family to re-evaluate their budget.
“That’s an electric bill a gas bill, that’s something that could be going into the home that’s taking away from the home so as I parent I’m very concerned,” Moyd- Williams said.