3 ms·
FICA 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
by twoodfin 14y ago
FICA 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).