Millions noticing paychecks lighter, due to payroll tax hike

Millions noticing paychecks lighter, due to payroll tax hike

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CHICAGO (FOX 32 News) -

Many people are preparing to get their paychecks later this week. If you haven't seen yours yet, there won't be a need to call human resources--the government is taking more.

"I haven't seen it yet, however family and friends have been talking about it, so," says Dulcie Gentle. "I'm pretty sure it's going to come Friday when I get paid. Not looking forward to that are you? No, not at all I'm a little nervous actually."

During the recession, the government provided everyone with a temporary cut in Social Security taxes from 6.2% to 4.2%.

Congress allowed that break to expire as both sides argued over the Fiscal Cliff, making the way for an additional 2% to be taken out of your paycheck starting this month.

We asked people on our Facebook page how they felt about the take home deduction.

Artina Graves says: "With this increase in payroll tax after the people who are working retire they will get actually have Social Security in the end. It's like taking out an extra 40 bucks for Pension instead putting it in Social Security for your future."

Jeanne Kelly says, "You can't possibly believe that your hard earned money will be there when you are ready to retire! How about letting us- the tax payers, put OUR money into an IRA or something we have control of instead of the government!

"It adds up, I mean, people have families. I'm married and have a daughter and every little bit counts," says Tyler Stephens. "I think every deduction matters, every percentage adds up at the end of the day."

The question many continue to ask is, if this can be fixed.

"Right now with the economy struggling, with gasoline prices starting to go back up again, this increase is going to hurt a lot of people," says FOX Financial Analyst Phil Flynn. "I think you ought to send a message to Washington and say, 'hey, we're not happy about it.'"

Experts say the 2% tax increase would mean a $1,000 cut to a family earning $50,000 per year.

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