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Your Paycheck in 2012 - After Stealing from Social Security ^ | January 7, 2011 | Political Calculations

Posted on 01/07/2012 8:21:16 AM PST by Kaslin

>How much money will you really take home from your paycheck in 2012?

To find out, we've created the tool here so you can run the numbers that matter the most for you!

In addition to finding out how much money Uncle Sam will be taking straight out of your paycheck for income tax withholding and FICA (which we've broken down into your Social Security and Medicare tax components), our tool will also work in your 401(k) or 403(b) retirement plan contributions, as well as the effect of any flexible spending account arrangements you may have set up through your employer.

Better yet, our tool will also let you see how you take home pay might change if you earn a raise during the year!

Just enter the indicated data into our tool, and we'll run your numbers for 2012, or at least your numbers through February 2012, depending upon what happens with that temporary Social Security payroll tax cut. If and when that changes, we'll post a new version of the tool!

The when you are done with that...

You can check how does your paycheck compare to what it would have looked like in 2010, the last year before the Social Security payroll tax cut? And for that matter, when both Single and Married tax filers had lower federal income tax withholding rates in place as well? Did you really get the benefit of that full 2.0% reduction of your income more in your pocket? Our results table below shows how you take-home pay would have been....


As for why President Obama's promise of a 2.0% payroll tax cut really doesn't add up to 2.0% of your salary or wage income, see the charts here (if you file as Single) and here (if you file as Married), for the explanation of those tax withholding dynamics....

And remember, one of the consequences of not putting that extra 2.0% of your paycheck into Social Security is that the program will run more deeply in the red, which will force the government to have to borrow more money just to pay benefits to today's Social Security recipients.

Our advice: if you'd like to put Social Security on a more sound footing, and keep your take-home pay from being reduced by 2.0% when the temporary Social Security payroll tax cut is set to expire in February 2012, have your U.S. Representative or Senators reduce all the other income tax rates (and withholding tax rates) by 2.0% (or more). As far as President Obama is concerned, it will make no difference to how much money the federal government will borrow on his watch.

Previously on Political Calculations

We've been in the business of calculating people's paychecks (not including state income tax withholding) since 2005!

But before we forget, your employer pays a lot more to keep you on the payroll than just your paycheck! The tool below shows how much it costs to employ you in 2011-12!

TOPICS: Business/Economy; Culture/Society; Editorial
KEYWORDS: federalincometax; fica; incometax; paycheck; ss; yourpaycheck

1 posted on 01/07/2012 8:21:19 AM PST by Kaslin
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To: Kaslin
Well, my paycheck is from Social Security. So there you go.
2 posted on 01/07/2012 8:24:40 AM PST by ExtremeUnction
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To: Kaslin
>How much money will you really take home from your paycheck in 2012?

Not enough....

3 posted on 01/07/2012 8:28:45 AM PST by EGPWS (Trust in God, question everyone else)
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To: ExtremeUnction
I'm drawing down on that PLUS several government retirement programs, and spare change I pick up near the cash register at the grocery store.

In the meantime GOLD is high ~ and a friend got me to look at those options. We are sitting on top a major deposit ~ the backyard may well be doomed!

4 posted on 01/07/2012 8:28:45 AM PST by muawiyah
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To: Kaslin

I thought this payroll thing was an extension of last years payroll thingies.

5 posted on 01/07/2012 8:50:50 AM PST by Logical me
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To: Logical me

Oh, did the rate change or is it the same?

6 posted on 01/07/2012 8:51:53 AM PST by Logical me
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To: Kaslin

Excellent post.

Unfortunately most Americans are morons who delight in their own ignorance.

They will scream in pain when the political lies they’ve accepted for decades make them destitute.

Then they will scream in pain, crying out, pointing the finger at someone else.

But right now, when the information is available and they can scream in pain at their Congressmen, they shrug it off because they’re not completely broke yet.

7 posted on 01/07/2012 9:05:01 AM PST by PieterCasparzen (We have to fix things ourselves.)
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