Payroll Tax Increase Means a Chunk Out of Your Paycheck

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Tallahassee, FL - January 4, 2013

The fiscal cliff deal may have avoided the big income tax increase, but your check is probably going to take a hit anyway.

A payroll tax increase is going to take a chunk out of many paychecks this year.

"It is a two percent reduction, the payroll tax goes from 4.2 percent to 6.2 percent and that is taken off every single paycheck," said Robert Weissert from the Florida Tax Watch.

According to the Florida Tax Watch, an employee making $50,000 a year--will see nearly 100 dollars taken out of their paycheck a month.

"When I got on Social security they tax me two-thirds of my 770 dollars that I was suppose to have each month," said David Hormoth, a Concerned Citizen.

Social security deductions and payroll taxes are going up, while take take home pay will go down.

"Floridians and other Americans have less money to spend, which means less money in there paycheck every month," Weissert said.

Richard English from the Second Harvest of the Big Bend says, It will cause more people in our area to go below the poverty line.

"We currently have approximately 150-thousand people living in poverty you are talking about putting an additional burden on them and any one who is borderline poverty," said English.

According the Florida Tax Watch, Florida's economy will hurt in the long run, by the payroll tax increase.

"Our tourism industries are in trouble because any time we are talking about less take home pay either for Floridians--we are potentially talking about hurting Florida's economy or hurting jobs," said Weissert.