I'm confused? if the fiscal cliff has been averted, why is my FICA higher now on my check? isn't this what this was all about?
You are thinking about federal income taxes that are staying the same unless you make > 400k
This is FICA tax which is 6.2% of your payroll income. It was cut to 4.2% in order to stimulate the economy. The tax break was not renewed.
This increase should cause you to have a bigger tax refund because you are going to have less taxable income.
And we really couldn't afford a damn FICA tax break anyway. Because it is only taking on like the first 100k you make.
What they should have done is raise that 100k limit to 250 or 400 and let the middle class keep the tax break