hereWell, actually we all are in the form of a 2% Social Security tax cut. It Makes you feel all warm and fuzzy inside about the future of Social Security doesn't it? Hopefully, you aren't expecting to live off Social Security anyway and have already started contributing to your own 401K 403B, Roth IRA, or whatever kind of retirement account you have.
2% isn't exactly life-changing, but depending on your current salary, it could add up to a nice chunk of change over the course of the year. For me, 2% over 26 paychecks works out to $780 this year in tax savings. The government wants me (and you) to go out and stimulate the economy with our 2% pseudo raise, but the jokes on them, I will be stashing mine into the wedding fund for future use. Besides, don't they know I gave up shopping until March.
What will you do with your 2%? Pad your savings? Eat at Chick-fil-a every Friday? Hoard all your money until the end of the year and buy a $700 bottle of wine like this guy? Something even better? Do tell.
(note: Ashe made a great point in the comments, the raise is only temporary for the 2011 tax year, so get your saving on now while you can. If you want to save it, try setting up an automatic transfer on pay day, so you don't get a chance to spend it!
Another good point from Kendra, if you don't pay SS tax, then you don't get a "raise". Can you tell it's slow at work?)
I read somewhere that the 2% is temporary-- for this year only? If I can think to remember it when I get my next check (I get paid once a month), then I'll probably stock it in to my credit cards... because that'd be an extra $800-900 for the year knocked off!
ReplyDeletenice! i think i'll put it towards my cc's too! year of SAVING!!!
ReplyDeleteI'll probably just use it to keep myself from over drafting :/
ReplyDeleteI will take my 2% and saveeeee or continue to pay off some bills and get my eyebrows done LOL
ReplyDeleteActually we aren't ALL getting a raise. I work for a municipality in MA. We don't pay into SS at all, but we have a 10% minimum mandatory contribution to our pension. I am also not eligible for SS for the years of service I work for the municipality, but this who SS tax cut somehow actually translates into LESS money in my paycheck (I forget how it works out that way, but it does). So, booooooooo, I don't need any of tat SS anyway, I got myself a hefty pension at the age of 29! :)
ReplyDeleteI'd rather the government keep that money and invest it in social services and education, instead of them anticipating that money going to big business (in the form of people spending that extra cash) to supposedly boost the economy and create jobs.
ReplyDeleteWith my pay it works out to be about $5 a paycheck. It adds up to $260 this year, which isn't much, but every little bit helps. I think I will be auto transferring it directly to a savings. Penny by Penny!!
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