WASHINGTON, D.C.--Some are saying that the deal to avoid falling off the Fiscal Cliff came with $41 of tax increases for every $1 in cuts. As the document continues to be scrutinized, we are learning that there is a good bit of truth to that.
Mississippi households will be feeling some of the effects in the form of some federal tax increases that were not written out. In other words, the Bush-era tax cuts stayed for now, but Congress allowed some increases anyway.
One of those is a two percent increase in the payroll tax. Kathy Pickering, president of H&R Block, explained what that might mean for a Mississippi household.
"For someone who's making say, $50,000 to $60,000 per year, that would mean about $50 a paycheck, if they get paid twice a month," she said.
There's also the Social Security tax increase. That's going up for all Americans.
The bottom line is: You will see less money in your take home pay at any level.