The heated fiscal cliff negotiations are over — for now — so it's time to assess your wallet. You probably understand the centerpiece of President Obama's much maligned offer to Republicans, which raised income taxes on the wealthiest Americans by allowing the Bush-era tax cuts to expire for the highest brackets. (Obama was aiming to increase taxes on individuals making more than $250,000 per year and, but eventually settled on a threshold of $400,000, and $450,000 for couples.) Buried within the bill that the House passed last night, however, is a provision that a majority of Americans will begin to feel immediately: the expiration of a payroll tax break introduced in 2010. This means some 77% of Americans will pay a bigger portion of their income to the federal government, reports The New York Times:
Indeed, for most lower- and middle-income households, the payroll tax increase will most likely will equal or exceed the value of the income tax savings. A household earning $50,000 in 2013, roughly the national median, will avoid paying about $1,000 more in income taxes — but pay about $1,000 more in payroll taxes.
source: 77% of Americans Will Pay More Taxes in 2013 - Yahoo! News
So if you get a 4% raise this year.. the government get's half of it.. I hope all those effected voted for Obama. lol