Crockett is one of 61,000 Americans who will soon see about a 6% deduction from each paycheck. This is up from the past two years when Uncle Sam gave salaried and wage employees a break during a payroll tax holiday, but now the holiday is over.
With the new deduction if you bring home $50,000 a year you'll soon be paying in about $1,000 more than the past couple of years. This has a lot of people readjusting their budgets and some are wondering if this will have a negative effect on the economy "Knocking down somebody's take home pay means less money that they have to go out and spend to stimulate the economy, so as far as boosting it, I'm having some doubts," explained CPA Ben Wallace.
Wallace isn't the only one with doubt, he's said he's seen a lot of folks concerned, but others say this pay cut may be worth it. "Some say, well if you know what if my take home pay is reduced and it can offset the deficit or there will be something there in social security to draw when I retire then I will take it," continued Wallace.
The new deductions will also affect those that are self-employed when it comes time for them to file their taxes they too will a little more than a 2% increase.