There were a great many uncertainties as Congress and President Obama tried to strike a deal to avoid the dreaded fiscal cliff.
The Democratic-controlled Senate passed its version of a bill early Tuesday, after the deadline had actually passed. The Republican-controlled House was still battling over it almost 24 hours later, but it finally voted to approve the bill.
All three South Dakota members of Congress, Democrat Sen. Tim Johnson, Republican Sen. John Thune and fellow Republican Rep. Kristi Noem, voted for the bill.
Still, this argument will continue. The Democrats want to raise some taxes without specifying spending cuts. The GOP is demanding spending reductions but is against raising most taxes.
But they can agree on one thing: Those of us who depend on regular paychecks will take a hit. We will see an increase in payroll taxes, as a temporary 2-percent reduction in the payroll tax, instituted two years ago in an effort to put more cash in people’s pockets, and into the economy, will be allowed to expire.
Here is a Wall Street Journal calculator that indicates how much more you will pay in 2013. It’s easy to figure, and painful to witness. In addition, The Journal reports that experts think it will also slow the already sluggish economy.
So, ordinary people will pay more, and the economy will be damaged. No wonder this tax had to be increased!
Paychecks will be smaller for most working people. For a lot of people, seeing their checks shrink by $20, $30 or more every two weeks will have an impact.
Happy 2013 from your friends in government! Federal workers, including Congress and Vice President Joe Biden, however, are in for a pay raise. President Obama issued an executive order last week to help out those poor struggling folks on Capitol Hill.