New Tax Cuts Taking More From Your Paycheck

That's right your paycheck maybe smaller than what you might had thought. What everyone pushed was the reduction of social security tax from 6.2 to 4.2 making many think that they were going to get a 2% pay increase, but what very few told you was that at the end of 2010 the make work pay credit expired which was a reduction on your federal income tax. It was a credit up to $400 per a person. This was a refundable tax credit, when this went away your income tax went back to 2008 tax rates, so in other words your income taxes went up so your paycheck went down. Yes you did get the reduction in social security tax but that 2% did not offset in many cases the income tax increase.