Mostly I ignore the discussion about a payroll tax holiday. As a NV state employee, I am social security exempt. However, that's not the only tax of interest or the most important one. Allow me to illustrate.
While your Social Security withholding has dropped from 6.2% to 4.2%, my contribution to PERS (Nevada's version of SSA) has risen from 9.5% when I was hired to 12.1% this past summer. This means I never see one eighth of my pay because it goes to my 'retirement'. Actually, I only take home about 70% of my actual wage after taxes. Even if I were on SSA, the reduction over two months would be minimal, less than $19/week, or about $160 for the whole two months they extend it, far less than the $1000 Obama keeps using as a figure. This comes also at a time when they're worried about Social Security's solvency while they reduce the amount of money that goes into the fund. Brilliant.
Meanwhile, my FICA has gone up. This is that portion from which you hope to get extra money when you file taxes in April. My most recent paycheck, which came in last night, was taxed for FICA at a rate of 11.67% and Medicare at a rate of 1.45%. The state of Nevada conveniently stores all my pay stubs from forever online, so I looked back at previous rates. At the beginning of 2010, my FICA earnings were taxed at 8.76% and Medicare was still at 1.45%. My first paycheck after Obama was inaugurated was taxed FICA at 7.73% and 1.45%. So, from my personal example, my taxes have gone up under Obama. Not only does the state exact more for my 'retirement' but also my federal withholding has risen too despite the fact that I have taken a pay cut. That is a 51% tax HIKE under Obama, and that's just my paycheck, not including all the other fees for 911, car registration, my cell phone, utility compliance costs, etc., which have been passed on to me because he wants to tax companies.
I wondered why I had less take home pay than before. Now I know and so do you.
Do not let them own the information. They can bend the numbers as they like, but I wager if you look at your paychecks and bills and such you will find increases in what you owe in the sections associated with taxes. (Unlike you, I still have copies of bills dating back as far as 2003, for purposes of proving I am a paying customer, etc.) Meanwhile, Obama talks about how the rich haven't paid their fair share and about how he has cut taxes for 95% of Americans. The trouble with Obama is that, while it might be true that he cut A tax, there is a net tax increase. The Payroll Tax Cut will be paid for by people who take out mortgages. Green compliance is paid for by everyone who uses the service. Social security is paid for by those currently working. Obama's vacation is paid for by everyone except Obama.
Furthermore, most of Obama's tax 'cuts' are actually loans. I already started filing my 2011 tax return, and if you look at the form, if you claimed the Making Work Pay Credit, you now have a reduction in your refund or increase in your tax owed as appropriate by exactly the amount of the aforementioned credit. I was looking forward to a refund of about $400 but will only receive $47 because I have to pay that money back.
What they give you with their right hand they take away with their left. Then they fudge the numbers to assure you when you worry and stir up chaos when they want you to worry. It's amazing. It's magic. It's tyranny. Do your own homework. That's always good advice.
*In case you're wondering about how I end up with only 70% of my pay, here's the skinny: 12.1% PERS + 1.45% Medicare + 11.67% FICA = 25.22%. The other 4.78% reduction pays for things like health insurance, NV Health and Wellness programs, and my HSA, and is hence not money that I actually see on my check.
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