tax cut

A Tax Increase

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We're heading into the official start of tax season and this year Uncle Sam wants just a little bit more.

For millions of Americans the first thing they will see when they visit the tax man is a tax increase. This year about twelve million workers will be hit with an automatic adjustment in their payroll taxes. And for the first time in 34 years the amount of income subject to be taxed is 7.3%. That tax could cost you as much as $534, more if you're self-employed.

So what's behind the increase? The social security taxable minimum is adjusted based on U.S. wages and not consumer prices. Accountants say the sudden hike is two years of wage gains packed into one. So as wages go up so does the amount the government can tax you.  read more »