paycheck

[zacs]

$334 less on a bi-weekly check.

OUCH... i knew it was coming, but man it still stings...

[striperman36]

welcome to your middleclass non-tax increase

[chefchris401]

mine dropped $27 a week, just from the social security increase. never ends

[zacs]

there goes any plans i had of re-powering this winter.

how is the economy not going to take a massive hit from this?

[striperman36]

Everyone's getting hit. People that were over the SS max income limit, get hit with the full 6.2 pct until the get over the limit again.

RI has that UnEmployment tax - 720 bucks maximum.

wonderful stuff;

[fishbones]

I've had several employees call me up asking why their checks are so much less now. I explain to them that it's the tax increase and they say they thought it was only for the wealthy. I tell them "congratulations, you are now wealthy according to our government". I started dumping more into my 401K and HSA account to protect it from being taxed, but it still sucks.

[Swimmer]

Originally Posted by fishbones

I've had several employees call me up asking why their checks are so much less now. I explain to them that it's the tax increase and they say they thought it was only for the wealthy. I tell them "congratulations, you are now wealthy according to our government". I started dumping more into my 401K and HSA account to protect it from being taxed, but it still sucks.

But for every thousand you need to protect your forced to dump something like $3,000.00 into a shelter. Impossible to keep up with.

[justplugit]

Two percent doesn't sound like that much, the politicians know it, until it
comes out of the check. Already people are re-thinking their spending.
Another drag on the economy with a lot more to come.

Cut 10% across the board on every Govt Dept, it would knock out waste
alone, they wouldn't miss a beat in their performance.
Put the $$ back in our pocket book and then watch how the economy takes off.

[Jackbass]

Originally Posted by justplugit

Two percent doesn't sound like that much, the politicians know it, until it
comes out of the check. Already people are re-thinking their spending.
Another drag on the economy with a lot more to come.

Cut 10% across the board on every Govt Dept, it would knock out waste
alone, they wouldn't miss a beat in their performance.
Put the $$ back in our pocket book and then watch how the economy takes off.

Economics 101 do not raise taxes in a recession.
Posted from my iPhone/Mobile device

[striperman36]

Originally Posted by Jackbass

Economics 101 do not raise taxes in a recession.
Posted from my iPhone/Mobile device

Except if its someone elses money

[justplugit]

Originally Posted by Jackbass

Economics 101 do not raise taxes in a recession.
Posted from my iPhone/Mobile device

Don't raise taxes period. Live within your means.
People forget we hire these Politicians, they work for us.

[JohnnyD]

Originally Posted by fishbones

I've had several employees call me up asking why their checks are so much less now. I explain to them that it's the tax increase and they say they thought it was only for the wealthy.

And this is how Obama got re-elected - people that don't pay attention to what the hell is going on and how policies affect them.

The day before an agreement was reached the misses asked me to explain some details as to what the fiscal cliff is. The next day she and I were talking and I said, "remember how you were asking my about the fiscal cliff yesterday?" Her: "yeah" Me: "They reached an agreement today. Long story short, it means $80 less in your paychecks and an extra 2% taxes on my quarterlies." Her: "what the (*&$#"

[Raider Ronnie]

[QUOTE=JohnnyD;979208]And this is how Obama got re-elected - people that don't pay attention to what the hell is going on and how policies affect them.

Most of the guys I work with were bitching about smaller checks this week..
One of the younger guys who is always making remarks about me listening to political talk radio all the time says to me,
"My check is less this week, all thanks to Obama care"
I just laughed at him !
Sad thing is that pretty much sums up the younger generation today !

[Jim in CT]

Originally Posted by fishbones

I started dumping more into my 401K and HSA account to protect it from being taxed, but it still sucks.

Remember, if you put money into a pre-tax 401(k), you don't avoid taxes, you delay them. The trick is to pay your taxes when the rates are lower. I put all my money into an afetr-tax (Roth) 401(k). I prefer to my taxes today. Why? Because our debt will be $20 trillion when Obama is finally gone. Figure at least another $40 trillion to provide Social Security and Medicare benefits to the Baby Boomers.

I can't see how taxes are not significantly higher in 20 years than they are today. Therefore it's better to pay the taxes today, at a lower rate.

Obviously we'll all be in different brackets in the future, lots of moving pieces...but delaying your tax withholding until you cash out your 401(k), isn't always in your best interests.

[Piscator]

Originally Posted by Jim in CT

Remember, if you put money into a pre-tax 401(k), you don't avoid taxes, you delay them. The trick is to pay your taxes when the rates are lower. I put all my money into an afetr-tax (Roth) 401(k). I prefer to my taxes today.

I agree but unfortunately our Government doesn’t allow everyone to have a Roth…………you know, all the rich millionaires………

If you aren’t eligible for a Roth, you could put taxed pay into a 401K that will not be taxed later (the gains will be taxed though).

[PRBuzz]

Originally Posted by Jim in CT

Remember, if you put money into a pre-tax 401(k), you don't avoid taxes, you delay them. The trick is to pay your taxes when the rates are lower. I put all my money into an afetr-tax (Roth) 401(k). I prefer to my taxes today. Why? Because our debt will be $20 trillion when Obama is finally gone. Figure at least another $40 trillion to provide Social Security and Medicare benefits to the Baby Boomers.

I can't see how taxes are not significantly higher in 20 years than they are today. Therefore it's better to pay the taxes today, at a lower rate.

Obviously we'll all be in different brackets in the future, lots of moving pieces...but delaying your tax withholding until you cash out your 401(k), isn't always in your best interests.

Not just tax rate but income bracket: delaying taxes until retirement and no long drawing a salary, just SS.

[Jackbass]

I haven't even seen a paycheck yet. As a matter of fact I have about 15 on my desk that I can't cash because I pay my bills and employees first. But I am an evil business owner. So I have to be rich.

If only I made as much as my employees I would be golden.
Posted from my iPhone/Mobile device

[zacs]

i'm getting whacked a lot more than 2%...

i WISH it were only 2%....

[Jackbass]

Right like raising tariffs on imports from China. But then we could never be part of the world economy
Posted from my iPhone/Mobile device

[Saltheart]

The takers who reelected Obama will be getting just a little more for doing nothing as a result of you paying a little more (and getting nothing more in return). That's the way in our new minority block voting , illegal alien pandering , United Socialist States of America now.

[PRBuzz]

Soon we'll be FRANCE: 75% taxes or thereabouts!

Once had a salesperson in Germany say it wasn't worth working for the bonus incentives over there, the gov takes it all!

[Nebe]

What's a paycheck? I haven't had one of those since 1999..
Posted from my iPhone/Mobile device

[RIJIMMY]

folks, as all know, I am no Obama supporter. I too took a huge hit.
But this is your SS and Medicare contribution that went back to 4% from 2%. I dont consider it a raise in taxes. We cant complain SS will be bankrupt and then not contribute what all of us were contributing 2+ years ago. Its the same rate. No class warfare, no tax on wealthy, you want to participate (or actually you have no choice) you have to pay.

Zac - it should only be 2%. I wonder if your company coded your tax withholding in 2013 with the assumption that rates would go up (fiscal cliff). They didnt really have time to adjust since the compromise was jammed through. It may be a timing issue? I would look into it.

[spence]

Originally Posted by RIJIMMY

folks, as all know, I am no Obama supporter. I too took a huge hit.
But this is your SS and Medicare contribution that went back to 4% from 2%. I dont consider it a raise in taxes. We cant complain SS will be bankrupt and then not contribute what all of us were contributing 2+ years ago. Its the same rate. No class warfare, no tax on wealthy, you want to participate (or actually you have no choice) you have to pay.

Zac - it should only be 2%. I wonder if your company coded your tax withholding in 2013 with the assumption that rates would go up (fiscal cliff). They didnt really have time to adjust since the compromise was jammed through. It may be a timing issue? I would look into it.

Good lord, you're making sense?

Payroll went back from 4.2 to 6.2.

For some perspective, while you all were enjoying that extra 2% you were also increasing the deficit.

Zac, I doubt yours really went up that much. It's possible some of it was unemployment, many people max out during the year and their late checks are higher as a result.
Posted from my iPhone/Mobile device

[JohnnyD]

Originally Posted by spence

For some perspective, while you all were enjoying that extra 2% you were also increasing the deficit.

First of all, let's get one thing straight... not a single person on this forum is "increasing the deficit". Not a single person on this forum decides that small bandaids on a budget that is hemorrhaging money is appropriate. Not a single person on this forum is having their pockets padded by Lobbyists.

At the end of the first year when I took the reins of the company I used to work for, revenue was down about 10% but this strange thing happened... profits were up. Crazy thing that I learned at a young age when it comes to budgeting - As a first step, it is significantly easier to find waste and reduce unneeded expenses than it is to increase revenue.

Now, with that in mind, I'd be perfectly fine with FICA going back to normal if it also meant during the time of the tax cut, politicians cut expenses. If we were working towards a more balanced budget, I'd actually be ok with the increase. However with the new plan, we have a tax increase *and* increased spending, with a net increase to the deficit.

And let's stop all the BS with "it's not a tax increase, it's back to where it was before." Doesn't matter. On December 31, we were all paying one rate and as of Jan 1 that rate is higher. It's an increase, whether it was an expiring cut or not.

Interestingly enough, Congress found it necessary to increase FICA back to where it was (excuse me, not "extend the temporary cut"), yet Obama felt as though the federal pay freeze needed to cease, through Executive Order. Must have felt Congress deserved it due to the extra time in session digging themselves out of their self-imposed "fiscal cliff". And with the continued expansion and extra work within the federal government due to inefficiencies by everyone involved, all federal employees definitely deserved the pay raise as well.

Been about 5 years since I saw a pay raise (quite a number of pay cuts in that time actually). Obama has declared that Congress, federal employees and the welfare class deserve pay increases, when will the Middle Class that he defended so much while campaigning get our pay increase??

[spence]

Originally Posted by JohnnyD

First of all, let's get one thing straight... not a single person on this forum is "increasing the deficit". Not a single person on this forum decides that small bandaids on a budget that is hemorrhaging money is appropriate. Not a single person on this forum is having their pockets padded by Lobbyists.

Sure you were, you all were.

Without that extra 2% to be converted into securities the government had to borrow more money to cover obligations.

Everyone here voted for government representation that put these laws into place.

You my friend are guilty as charged.

At the end of the first year when I took the reins of the company I used to work for, revenue was down about 10% but this strange thing happened... profits were up. Crazy thing that I learned at a young age when it comes to budgeting - As a first step, it is significantly easier to find waste and reduce unneeded expenses than it is to increase revenue.

It can be easy to get many companies profitable by cutting expenses, but it also can damage the long-term health of a business or have a negative impact to employees. What happened to the profit your firm generated?

One of the drags on the global economy right now are the austerity measures taken in the EU. Spending has to be drawn down, if we cut back too fast we'll plunge right back into recession.

Now, with that in mind, I'd be perfectly fine with FICA going back to normal if it also meant during the time of the tax cut, politicians cut expenses. If we were working towards a more balanced budget, I'd actually be ok with the increase. However with the new plan, we have a tax increase *and* increased spending, with a net increase to the deficit.

I'm confident we'll see more this year.

And let's stop all the BS with "it's not a tax increase, it's back to where it was before." Doesn't matter. On December 31, we were all paying one rate and as of Jan 1 that rate is higher. It's an increase, whether it was an expiring cut or not.

Why all the outrage? I don't seem to remember anyone praising the Fed when their payroll contributions were temporarily lowered.

Interestingly enough, Congress found it necessary to increase FICA back to where it was (excuse me, not "extend the temporary cut"), yet Obama felt as though the federal pay freeze needed to cease, through Executive Order. Must have felt Congress deserved it due to the extra time in session digging themselves out of their self-imposed "fiscal cliff". And with the continued expansion and extra work within the federal government due to inefficiencies by everyone involved, all federal employees definitely deserved the pay raise as well.

Ending a 2-3 year pay freeze with a bump of .5 to 1%...not exactly a massive increase for those engaged in foreign service, our military etc...

-spence

[fishbones]

Originally Posted by spence

Ending a 2-3 year pay freeze with a bump of .5 to 1%...not exactly a massive increase for those engaged in foreign service, our military etc...

-spence

Spence, I think you'll be hard pressed to find anyone in here arguing that the military doesn't deserve pay increases. I think JD is referrring to Congress voting themselves a pay increase. In most jobs, increases are comensurate with performance and the overall profitability of the company. Can Congress really argue that they deserved a raise based on their performance or the financial health of the country?

[detbuch]

Originally Posted by spence

Everyone here voted for government representation that put these laws into place.

You my friend are guilty as charged.


-spence

No, not everone here voted for those who are responsible for putting whichever laws you're referring to in place. There were many votes against every member of Congress. And of those elected many were against laws that were passed.

The culprit is not primarily We the People who must vote between meeny, miney, and moe. It is those who have controlled the levers of power and used those machines to subvert their constitutional limitations. And by so doing have given themselves powers to legislate that were not given them by the Constitution. The Constitution, as written, does not give them the power legislate for the general welfare in the way they do. And whatever culpability we the voters have is mitigated by the nefarious means that leaves us choices that were never intended to be given. We were warned by the founders that once the people were given access to the public treasury, that would be the end of the Republic. They understood human cupidity, and created a form of government that would lessen the publics access to the people's treasury, and would even limit the Federal Government's ability to grow a treasury so massive as today's relative to the private sector. We the People, all of us including the many that protest against it, are saddled with a leviathan government that has enticed the ignorant into being its dependants, and rides herd on the rest. For blame, look more to those who decided that the Constitution was too restrictive, that the central government must be free to do what was meant for state and local governments and the people themselves were to do. And must be free to do it all without powerful checks and balances.

Stealing the treasure of freedom for tokens of dependency was the meanest con trick in our history.

[buckman]

Originally Posted by spence

For some perspective, while you all were enjoying that extra 2% you were also increasing the deficit.


Posted from my iPhone/Mobile device

Great response JD!

Posted from my iPhone/Mobile device

[basswipe]

Originally Posted by buckman

Great response JD!

Posted from my iPhone/Mobile device

I agree!