Jacology – Lawmakers Acting Like Adults In Fiscal Cliff Deal
ST. LOUIS, MO (KPLR) - Happy new year! Your taxes are going up. They’re not going up as much as they would have if congress hadn’t reached a deal on the so-called fiscal cliff. but, they are going up for everybody.
The first thing you’ll notice is that your take-home pay will be smaller. That’s because taxes automatically withheld from your paycheck to pay for social security are going up. For the past couple of years social security taxes had been cut to four per-cent of your gross earnings. As of Tuesday those taxes go back to a shade over six per-cent. Bottom line, your take home pay’s being cut by two per-cent.
If you’re among the very very few rich enough to be leaving behind an estate taxes will be going up if you bequeath more than five million bucks to your survivors. The first 5 million of an individual estate, the first 10 million of a family estate will be tax free. Anything over that will be taxed at 40 percent.
If you’re an individual making more than $400,000 a year or a couple making more than $450,000 a year then your income taxes are going up. Right now people making those handsome salaries face an income tax of 35 percent. THe new tax will be a shade over 39.5 percent. If you make your money from investments and you make more than $400,000 then your taxes goes from 15 percent to 20 percent.
So that’s the deal. Spending cuts? Congress decided to put that part of the deal off. But at least they’re acting like adults and dealing with a problem. Let’s see if that lasts.
I’m Charles Jaco and that’s Jacology.