Inflation

[Mac in Wisco]

Quote:
No, the Federal tax rates did not change, but your income tax withholding did. They were taking out less in withholding the past two years for the Making Work Pay tax credit. That credit expired at the end of the year, but in lieu of that, employees are now paying 2% less into Social Security this year. So, your withholding went up, but you are paying less into Social Security and your paycheck reflects a slight difference between the two programs.

Your income tax withholding is only an estimated payment on taxes due at the end of the year. Your withholding may have gone up, but the marginal tax rates didn't. If you are getting a large refund at the end of each year, you are effectively giving the government a tax-free loan for the year. If that is the case, you can adjust your withholding to get that money back into your paycheck.

 

[debilorrah]

Quote:
No, the Federal tax rates did not change, but your income tax withholding did. They were taking out less in withholding the past two years for the Making Work Pay tax credit. That credit expired at the end of the year, but in lieu of that, employees are now paying 2% less into Social Security this year. So, your withholding went up, but you are paying less into Social Security and your paycheck reflects a slight difference between the two programs.

Your income tax withholding is only an estimated payment on taxes due at the end of the year. Your withholding may have gone up, but the marginal tax rates didn't. If you are getting a large refund at the end of each year, you are effectively giving the government a tax-free loan for the year. If that is the case, you can adjust your withholding to get that money back into your paycheck.

That what I meant!! The withholding. I work in HR so my brain thinks tax increase when it is really the bracket method withholding that changed.

And the social security thing doesn't apply to me personally. I am a public employee, so my contribution is a flat 2.9%. Thankfully we have a deferred income plan that I can contribute to as well.

 

[Dunkopf]

Quote:
No, the Federal tax rates did not change, but your income tax withholding did. They were taking out less in withholding the past two years for the Making Work Pay tax credit. That credit expired at the end of the year, but in lieu of that, employees are now paying 2% less into Social Security this year. So, your withholding went up, but you are paying less into Social Security and your paycheck reflects a slight difference between the two programs.

Your income tax withholding is only an estimated payment on taxes due at the end of the year. Your withholding may have gone up, but the marginal tax rates didn't. If you are getting a large refund at the end of each year, you are effectively giving the government a tax-free loan for the year. If that is the case, you can adjust your withholding to get that money back into your paycheck.

That what I meant!! The withholding. I work in HR so my brain thinks tax increase when it is really the bracket method withholding that changed.

And the social security thing doesn't apply to me personally. I am a public employee, so my contribution is a flat 2.9%. Thankfully we have a deferred income plan that I can contribute to as well.

You know the difference. A lot of people don't. Haven't been any Fed tax increases for a while now. Just the drop in SS for the employee.

 

[debilorrah]

Quote:

That what I meant!! The withholding. I work in HR so my brain thinks tax increase when it is really the bracket method withholding that changed.

And the social security thing doesn't apply to me personally. I am a public employee, so my contribution is a flat 2.9%. Thankfully we have a deferred income plan that I can contribute to as well.

You know the difference. A lot of people don't. Haven't been any Fed tax increases for a while now. Just the drop in SS for the employee.

I do know the difference. Now to educate those that don't: Your withholding is based on your gross pay each pay period and is bracketed (i.e $850-950 is $42 withholding - this just an example not an actual withholding number). Federal taxes are what you owe for the YEAR when you file your taxes. the BIG number.

 

[chickened]

The problem is not inflation it is the fact that the more money we print the less it is worth. Anyone watch the news Russia, China and Japan (pre- tsunami) wanted to use foreign currency to buy/trade on oil (only traded in US dollars currently) they say American dollar not worth as much.

 

[debilorrah]

Quote:
Personally I am concerned with inflation. What I see when I shop and how it affects my checkbook.

We decided not to sell the horses and buy different hay. We love them and it was breaking out hearts to have to sell them.

 

[chickened]

Yep inflation is bad, You and I when we are low on money we tighten our belts and do without. Other folks say in Wisconsin for example don't want to make that sacrifice and demand that I pay them more. Something is gonna give before long in this country we cannot continue to spend money... well... like it grows on trees. We need to go back to a republic form of government and do away with the democracy/mob rule system we are under. Sorry about the rant got my fuel bill today.

 

[debilorrah]

Quote:
I understand THAT one. I have paid over $1500 in the last two months for electric. I recently filed a complaint with PUC.

 

[chickened]

I live in the Pacific Northwest and we once had cheap power now we are selling our cheap power to other states and having to pay twice what we payed 5 years ago due in part to the Enron bailout.

 

[Dunkopf]

I'd hate to be an elected official during a bad recession. No matter what you do it's wrong. Of course I haven't seen much going on that's good. I was hoping some of the new Governors would do something useful. They aren't though, just doing more damage than was already there. Congress meanwhile is debating really important stuff like what should be on our coins. As long as we're stuck with a 2 party system nothing will change. The politicians all have enough money that they will be ok regardless. So only a small percentge of them are trying to help the average person.

The people in the OPEC nations picked a really bad time to rise up against their masters. I can't believe all the bad stuff going on right at the moment. I bet this is a little like it was in the years before WWII.