Payroll tax increase no holiday for Nashville workers

Payroll tax increase no holiday for Nashville workers (Image 1)
Payroll tax increase no holiday for Nashville workers (Image 1)

Whether your workplace is an office tower, a construction site or the kitchen of a restaurant, you're likely notice a difference when payday rolls around.

In 2010, President Obama introduced the payroll tax holiday as a temporary measure to stimulate the economy.

It lowered the rate workers pay for Social Security tax by two percentage points, from 6.2% to 4.2%.

However, now the vacation is over for workers. The payroll tax holiday ended with the New Year.

That means for every $1,000 in income, an additional $20 will be taken out for Social Security taxes.

Many families will have to make adjustments to their budgets.

“[We will have to cut] our fun activities, just our family and going out and our fun money for weekends,” said Jennifer Hout, who was enjoying a day at Centennial Park with her daughter.

“I might have to cut down on some of those extra trips to the movies,” said Cora Malanga, a Junior at Belmont University.

“No more Starbucks,” Malagna added with a laugh.

According to the Tax Policy Center, 125 million households will be affected by the payroll tax increase.

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