Whenever these taxes go up, paychecks go down. People have to decide what to give up since they are earning 2% less. It seems like we are in the midst of an economic recovery, and I personally don't think this is going to have a huge impact, but it may slow the recovery down a bit.
The Money Track
Independent Financial Advice & Personal Financial Planning
The problem with a slow recovery is that so many business owners are already hanging by a thread that the longer the economy lags the higher chance that these owners will fold (which translates into more unemployment). Then the question becomes are we in a recovery or not?
We are all aware of the changes to our social security taxes (among others). It is going back to a rate of 6.2%, from the 4.2% rate in 2011 & 2012. Is this economy really ready for those changes? How do you think your business will be effected? Are you prepared for these effects?