So I
keep seeing articles and reports on how the payroll tax has been hiked by 2%,
and I wonder why it is being reported as such, because it isn't a tax hike, it
is a return to the rate that we had before.
The rate for payroll taxes has been 6.2 % for many years, since 1990. The decrease to 4.2% was a temporary measure for 2011 and 2012. The
administration in an effort to increase workers take home pay, during a weak economy, reduced the
payroll tax by 2%, so instead of those funds going towards social security
which is where they normally go, they came home with you.
