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"While Congress did act in a matter that will keep income taxes from rising on middle-America, in doing so they allowed a temporary reduction in the Social Security payroll tax that was enacted under President George W. Bush to expire. Extensions on that tax break have allowed Americans to hold onto more of their income during the last several years in lieu of sending it to cover the cost of the Social Security welfare program, financed by a 12.4 percent tax on wages up to $113,700. During 2011 and 2012, Bush-era tax cuts kept the share of US workers at only 4.2 percent, with employers responsible for the rest. That reduction expired on Wednesday, however, and with no action taken by Congress it will increase to its old standard.
Starting immediately, US workers will lose 6.2 percent of their paychecks in order to fund Social Security. The Associated Press says this will cost a typical American family earning $50,000 annually around $1,000 in 2013."