One year ago, Congress defunded public media. Now that we're 100% community funded, please become a sustaining member or increase your existing membership today.
This archival content was originally written for and published on KPCC.org. Keep in mind that links and images may no longer work — and references may be outdated.
Social Security payroll tax rate rises, reduces paychecks
A trader works on the floor of the New York Stock Exchange on January 2, 2013 in New York City. A day after U.S. lawmakers reached a last minute agreement to avert the fiscal cliff, U.S. stocks surged as traders around the globe felt renewed confidence over global markets. Shortly after the opening bell, The Dow Jones Industrial Average rallied more than 230 points, or 1.7%.
(
Spencer Platt/Getty Images
)
Listen
0:41
Social Security payroll tax rate rises, reduces paychecks
The fiscal cliff legislation that lawmakers in Washington passed on New Year's Day may head off income tax increases for most people, but it didn't affect one tax that will go up for everyone who earns a paycheck: the Social Security payroll tax.
For two years, workers' share of the Social Security payroll tax has remained at 4.2 percent. Now it’s jumping back up to 6.2 percent. Lawmakers designed the original two-point reduction to stimulate the economy, and President Barack Obama made that a priority two years ago.
But neither he nor congressional Republicans tried to extend it as part of the fiscal cliff deal.
What does that mean? If, for example, you earn $50,000 a year, your Social Security tax will increase by about $1,000 over a year. So even if your income tax isn’t rising, you can expect to see a little less in your next paycheck.
One year ago, Congress voted to defund public media, eliminating a critical $1.7 million from our budget every year going forward. But they couldn’t silence us, and we’re not going anywhere. LAist is now 100% community funded and that means we’re taking our future into our own hands and turning to you to keep local reporting strong.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
You come to LAist because you want independent reporting and trustworthy local information. Our nonprofit newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our communities. We are free to follow facts wherever they lead and to hold power to account without fear or favor. Our only loyalty is to our readers and listeners and our mission: to inform, engage, and strengthen Southern California’s communities.
If this story helped you, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Senior Vice President News, Editor in Chief
