Don't be fooled by January pay -- higher taxes loom

By: AP Email
By: AP Email

WASHINGTON (AP) -- Even if the "fiscal cliff" can't be avoided, workers probably won't feel the full brunt of the tax hikes in their paychecks right away.

The IRS has delayed releasing income tax withholding tables for 2013. So employers are planning to withhold income taxes at the 2012 rates, at least for the first one or two paychecks of the year.

That doesn't mean take-home pay won't take a hit. Social Security payroll taxes are set to increase on the first of January. And that will be reflected in paychecks.

And the other tax increases will be felt eventually. If employers don't withhold enough taxes in January, they will have to withhold even more taxes later in the year to make up the difference.

If Congress fails to act, workers at every income level face significant tax increases next year. According to the Tax Policy Center, a taxpayer making between $50,000 and $75,000 would get an average tax increase of $2,400.


The comment sections of our web set are designed for thoughtful, intelligent conversation and debate. We want to hear from the viewers but we are not obligated to post comments we feel inappropriate or violate our guidelines. Here are some of the criteria you should follow when posting comments:

Comments cannot be profane or vulgar. Children and families visit this site. We will delete comments that use profanity or cross the lines of good taste.

We will delete all comments using hate speech. Slurs, stereotypes and violent talk aren’t welcome on our web site.

Comments should not attack other readers personally.

We will delete comments we deem offensive, in bad taste, or out of bounds. We are not obligated to post comments that are rude or insensitive.

We do not edit user-submitted comments.

As a host WEAU 13 News welcomes a wide spectrum of opinions. However, we have a responsibility to all our readers to try to keep our comment section fair and decent. For that reason WEAU 13 News reserves the right to not post or to remove any comment.
powered by Disqus
WEAU 13 NEWS 1907 S. Hastings Way Eau Claire, WI 54701 By Phone: Main Number (715) 835-1313 and (715) 832-3474. Tip Line (715) 839-WEAU - (715) 839-9328 Sports Line (715) 852-1537
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 184696841 - weau.com/a?a=184696841
Gray Television, Inc.