(WHAS11) -- New Year, new paycheck. Starting in 2013, across the board, most American’s take home pay is going down due to the new payroll tax increase. That tax is really an old payroll tax that the federal government temporarily lowered two years ago known as the payroll tax holiday. However, the vacation is over and a look at your check will tell you its back to reality.
Two years ago President Obama supported lowering social security taxes from 6.2 percent to 4.2 percent as part of a stimulus plan to put more money in American pockets. For a worker making $50,000 a year, that was about $1000 in tax cuts. However that drop was never intended to be permanent.
Starting Jan. 1 people making between $40 and $50 thousand a year will bring home about $600 less according to the tax policy center.