Wednesday, January 16, 2013
REDISTRIBUTING THE WEALTH
Many Americans noticed that their first paychecks for 2013 were a little lighter the last few weeks, thanks to a payroll tax increase that is forcing millions of Americans to make the kind of tough budget cuts their representatives in Washington lawmakers seem unwilling to tackle.
Thanks to the end of a two-year cut on payroll taxes which fund Social Security, the tax has risen back up to 6.2 percent from 4.2 percent, costing someone making $50,000 annually about $1,000 per year and a household with two high-paid workers up to $4,500.
What saddens me is that many Americans believe that their Social Security contributions are being held somewhere in their name, earning interest, when the truth is those dollars are being spent today.
Mark Zandi, chief economist at Moody’s Analytics, told The Associated Press that the higher Social Security tax will slow growth by 0.6 percentage point in 2013. But for the average American worker who earns $41,000 – and will receive $32 less on every biweekly paycheck moving forward – the change will not be an “insubstantial hit,” analysts told FoxNews.com.
“And I think a lot of people don’t even realize this is happening,” said Michael Tanner, a senior fellow at Cato Institute, a Washington-based think tank. “This kind of just slid by the wayside with all the talk of the fiscal cliff.”
Simply put, less money “definitely will be” a shock for many Americans toiling in an uncertain economy, Tanner said, adding that many will restrict impulse purchases rather than alter long-term financial planning.
“People will have less money in their pockets, so by definition, they’re going to have to make do with less,” he said. “How they change their behavior remains to be seen.”
I can only hope that young Americans wise up and take a hard look at Social Security as a whole. People under the age of 50 need to start asking serious questions as to why they’re paying more into a Social Security system that they are increasing unlikely to get any benefit from.
This is not a party issue. Both parties have been stealing from Social Security for several decades, have not taken action and have been lying to you about it.
GO BACK TO SLEEP AMERICA....YOUR MONEY IS SAFE WITH OBAMA