4 ms·
Essentially. At the lower end of the scale the majority of tax paid is FICA, which is almost increasing by 50%. I don't know how tax credits will affect the r
by jboggan 14y ago
Essentially. At the lower end of the scale the majority of tax paid is FICA, which is almost increasing by 50%. I don't know how tax credits will affect the refund situation at the end of the year, but this will be the actual effect on paychecks.
- twoodfin 14y agoFICA is not going up by almost 50%. It's 5.65% vs 7.65%. That's 35%. FICA also has no deductions or credits: The rate you see is what you pay (and your employer pays the same amount). The rest of the hit is the expiration of the 10% bracket from the Bush tax cuts. That saved 5% of the first $8400 of taxable income (from the old, larger 15% bracket).