Payroll Tax increase...how will it impact you?

I live within my means, save for a rainy day, save for retirement, save a little for kids college.

However, I am single and very much live paycheck to paycheck so this increase will impact my spending on luxuries such as waxing and my 1x a month cleaning lady will lose her job with me. I will also reduce spending on unnecessary things like buying my kids extra clothes and shoes. I already feel like I don't spend a lot, but will have to cut back even more. May even cut my cable and just have internet.

I'm just wondering if the economy will suffer more because people like me will spend less on extras and luxuries?

Message edited 1/2/2013 11:47:02 AM.

Payroll Tax increase...how will it impact you?

Well I knew it wouldn't last. It was nice extra spending money - you know life, things pop up and are additional expenses.

It won't kill me but of course I will miss it.

I've been trying to stay smart these past years ( I generally am, but have been moreso lately).

I've taken to Dollar Tree and sales, thrift stores and such for some items.

Payroll Tax increase...how will it impact you?

Can't say because I don't know how much less I will be getting. I don't make much so I can't imagine it would be that significant but we'll see.

Payroll Tax increase...how will it impact you?

from what they are saying on the news its about $1000 for those making 50k, so for me it will be less than $20 a paycheck

Still sucks because when I go back to work in february I'll have the added cost of childcare, and the added cost of having dd on my health insurance

Payroll Tax increase...how will it impact you?

another thing I thought of- I got my annual raise which wasn't crazy high due to the economy and stuff, but now it kind of just goes away, you know? Like I won't even see it.

Not being a Debbie Downer, just the facts of the matter.

Still happy to be employed, though.

Re: Payroll Tax increase...how will it impact you?

It will be one of many factors to consider when deciding whether to TTC this year. We do not pay for child care now, and will need to for #2, and had intended on setting aside a couple of hundred bucks a month to build a savings for that purpose. With the payroll tax increase i "lose" roughly 190 a month. With the increases we're seeing in other expenses and DH's salary being at a standstill, I'm not really sure how things will play out. But at the end of the day, it's not going to affect us to the point where we can't afford our home or anything - so I will lament, move on to plan B (once I figure out what that is), and count my blessings.

Re: Payroll Tax increase...how will it impact you?

No raise here in 2 years, and taxes just went up, and you can bet, homeowners ins. will be going up, and now the tax increase. The middle class will be pushed out of long island very shortly.

Re: Payroll Tax increase...how will it impact you?

We have already been cutting out a lot of things. Our check doesn't seem to go as far as it did 3 years ago.

Message edited 1/15/2013 5:56:42 PM.

Re: Payroll Tax increase...how will it impact you?

I guess I can look at it two ways. I have been putting extra money away every month because of the reduction in payroll tax. Now that the reduction is gone, I can either continue to put that money away and get by on a little less or just not put as much money away and live normally. I don't see it impacting me at all.

Re: Payroll Tax increase...how will it impact you?

Re: Payroll Tax increase...how will it impact you?

I get paid monthly so I see the impact more readily.
It was quite a surprise this morning....big number.

Re: Payroll Tax increase...how will it impact you?

It will suck for sure but honestly, it won't change my savings. It will change my spending slightly. I didn't get too used to it. Hopefully, letting the payroll tax expire won't bite us in the ass.

Payroll Tax increase...how will it impact you?

I honestly am not losing sleep over it. IF I have to cut out something I will. For me its just another fact of life.

Re: Payroll Tax increase...how will it impact you?

Re: Payroll Tax increase...how will it impact you?

Its really not enough per check to break me. I have a second job so it balances plus my hubby got a raise (i did not).

It doesnt bother me much at all really. I'll figure it out. Got no choice now do I? I blame politicans as a whole. But what can I do? Choices were made. So this is our payment.

BTW: if this is the Obama payroll holiday tax crap then im HAPPY to see it go. it never helped me to start with. If its the Bush tax then hey, its gone, oh well. as always we will find a way. But at least now its all up front and clear.

Message edited 1/2/2013 1:05:07 PM.

Re: Payroll Tax increase...how will it impact you?

Here's the thing..did you all actually do MORE in 2012 than in 2011?

If so, I'd assume spending would just go back to how it was in 2011 and earlier.

I don't really watch every penny so to speak. DH and I have separate accounts and I'm going to see a bit more in my account because I switched to his insurance. He'll see less. So I think overall my check will still go up so it won't matter. Overall, if anything we won't have as much for extras like a Starbucks run or something. Neither of us have gotten any numbers on raises or bonuses, so if I get a 2% raise, I won't notice it at all.

Re: Payroll Tax increase...how will it impact you?

Message edited 1/2/2013 1:15:49 PM.

Payroll Tax increase...how will it impact you?

When we got the reduction of the taxes, I added the extra money to my 401K, if needed, I'll just reduce the amount of the tax change.

Payroll Tax increase...how will it impact you?

Shouldn't kill us but we'll cut out some unnecessary spending to offset it.

Re: Payroll Tax increase...how will it impact you?

really it was a perk for the last 2 years that they cut it.... we knew this was coming. it stinks, but its not like a surprise. Would love the extra money with day care costs about to start this year, but we will manage.

Re: Payroll Tax increase...how will it impact you?

The way I see it, 2% sucks now, but that 2% was cut from social security and had to be made up by the general fund. We're all better off in the long run with SS staying independent.

One thing I hear a lot is people complaining about tax cuts expiring AND about spending, but a tax cut really is the equivalent of spending and needs to be paid for

Re: Payroll Tax increase...how will it impact you?

how much of a differnce is it really going to be ? i dont remember what the differnce was before that granted i think i got a raise so maybe i didnt realize but if its no more than $100 per paycheck (i get paid bi-weekly) then it shouldnt affect us much. DH is paid hourly so his paycheck varies from week to week so as long he gets paid a min. ceartin amount which he should.

I always balance paying bill with less money then what we bring in.

Payroll Tax increase...how will it impact you?

I have no clue, i guess we will see tomorrow when we get paid.

Re: Payroll Tax increase...how will it impact you?

Re: Payroll Tax increase...how will it impact you?

I got my first paycheck of the year today and it was about $60 less than normal. We are already living paycheck to paycheck so I will have to find where to cut somewhere probably will be taking the train to work a few days a week (cheaper than driving). Luckily I get paid three times this month so it will give us a little cusion for February.