The middle class tax increase

As discussed in previous blogs, the very little talked about payroll tax holiday is now over.  The promises that taxes would not go up for the middle class from the present administration has proven to be false and will now show itself in every paycheck.  The increase in the payroll taxes of 2% affected roughly 77% of all workers.  This means less money in the pockets of almost the entire working class of our nation.  Although the tax is relatively small, the US economy is dependent  on spending and is sure to take a hit when it comes to vacations, dining and other extras. With less disposable income, coupled with an already anemic US growth rate, the increase in the payroll tax will hurt.  If the economy starts to pick up, the payroll tax could be mitigated, but we do have many more fiscal fights in the upcoming months.  Stay tuned for more updates as we get closer to the debt ceiling.  

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