Well, in addition to the pay freeze…..
If I understand the new tax package correctly:
Most American workers will get a 2 percentage-point break on their payroll tax for one year. Instead of paying 6.2% on wages up to $106,800, they will only have to pay 4.2% in 2011.
However, some workers to include some federal employees, teachers, and other public employees who are covered under another type of pension system, and do not pay into SS we will not get it.
This tax holiday replaces the Making Work Pay credit, which expires this year. Unlike Making Work Pay, which was limited to workers making less than $75,000 ($150,000 for couples), the payroll tax holiday will be available to everyone who pays into Social Security.
The Making Work Pay Credit was $400 for singles and $800 for married couples.
The bad news: Since the Making Work Pay Credit was replaced by the Tax holiday, it looks like those workers who do not pay into SS will end up with a tax increase next year.
Happy new year folks.
Marc Boucher
AFGE Local 1904
Department of ARMY, New Jersey
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