JLF Triangle Blog

Reality Bites: NC State Explains The “Blow” Of New Tax Hikes To Employees

Today’s NC State Bulletin carries this item headlined “The Lowdown On Taxes.”

 

Posted: 03 Jan 2013 08:18 AM PST

There’s probably a way to say this that softens the blow but we’re all adults, so here’s the short version: taxes are going up.

The hike that affects most employees is a 2 percent increase in the amount individuals contribute for social security. The rate returns to 6.2 percent starting this month. Last year’s lower rate was a temporary measure enacted by Congress to help stimulate spending.

Also, social security taxes will now be paid on the first $113,700 of income, up from $110,100 last year.

If you make over $200,000 a year, you’ll also pay an additional 0.9 percent for Medicare. People earning less than that will continue to pay 1.45 percent.

Income tax rates will stay the same for individuals earning less than $400,000 and couples earning less than $450,000. Higher earners won’t know the exact amount they owe until the IRS publishes the tax tables for 2013. Until then, payroll will use the 2012 tables.

 

One Response to “Reality Bites: NC State Explains The “Blow” Of New Tax Hikes To Employees”

  • Jan
    07
    2013

    This tax “hike” is the return of the rate to that before President Obama cut it. Remember Obama cut taxes for most Americans with this and it was a stimulus program. Now the economy is in its fourth year of growth stimulus can be repealed. Surely you agree with cutting the deficit by returning the tax back to Bush era levels?

    Republicans never really favored this tax cut (maybe because the wealthy did not benefit much) and they didn`t fight to keep it.

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