making less $$ vent

megann831 · January 2013

I had an extra $169 out of my paycheck today, DD had $40 taken out, we've lost over $300/month. Things around here are pretty tight as it is, how are we supposed to account for that?

roseparade · January 2013

Thank our dysfunctional government for allowing the payroll tax holidays to expire. It's going to impact us by a few hundred a month too. Not so fun.

The flipside, though, is that it was a "bonus" when it the tax was cut...never communicated as permanent, so hindsight being 20/20 I suppose we all should have been banking it and not considering it as part of our "normal" salary.

ASmallWonder · January 2013

roseparade:
Thank our dysfunctional government for allowing the payroll tax holidays to expire. It's going to impact us by a few hundred a month too. Not so fun.
The flipside, though, is that it was a "bonus" when it the tax was cut...never communicated as permanent, so hindsight being 20/20 I suppose we all should have been banking it and not considering it as part of our "normal" salary.

This is all true but man, it blindsided me. Exactly when the holiday went into effect I was laid off. So I never saw a difference in the check I was used to because, well, I wasn't getting one. Then I got a new job and it just went right over my head that the number on my check was temporarily inflated. DH also got a promotion and raise at exactly the time the holiday started and with all my stress over being laid off, again, just went over my head. It's totally our fault but hot damn, it sucks.

mben1119 · January 2013

It was always intended to be a temporary tax cut. You should have expected it to go back up eventually. Plus, I'm of the mindset that if we need to pay more in taxes to get things done, then that is the patriotic thing to do.

Nechie122 · January 2013

Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

mylittlesunshine · January 2013

After 5 years we finally got a raise where I work. After accounting for the increase in what is being take out, I am still 1.60 ahead....so I didn't see a change. My Dh said his paycheck was about 50 less per paycheck. Not too bad for us.

MagickalNarwhal · January 2013

Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

Ooh snap!

jamiedsgirl · January 2013

I see this all over my Facebook - everyone blaming "Obama" for the tax "hike". Funny thing is, his administration was the one who put the tax holiday into effect in the first place! So they should really be thanking him for two years of extra money in their pockets.

ASmallWonder · January 2013

Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

Yeah, no. I mean, I'm not crying poor mouth or anything but when daycare is over a grand, it costs you almost $400 for ONE of the people to commute to work and you own a modest home, we're not rolling it in.

MrsWindyCity · January 2013

wife07mom09:
Thats the change all the Obama voters wanted.

lol what are you talking about? We were on a temporary "vacation" from the larger payroll tax; it's not like taxes went up.

Nechie122:Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me.

Nechie122 · January 2013

MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.
It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me. 

You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area.

DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.

jf198400 · January 2013

I think its stupid they ever put the temporary tax cut in place to start with. I mean it didn't seem like a big deal to get an extra $200/month at the time, but it sure seems like a big deal when you lose that $200/month. And lets face it, all it really did was put us even further into debt.

ASmallWonder · January 2013

Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me.
You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area. DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.

Yes but that isn't what you said. You basically said if you're out $300 a month because of this, you clearly make enough that $300 shouldn't matter. It does matter, which is separate from whether or not people should have been paying attention.

Nechie122 · January 2013

elmoali:
Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.
 
It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me. 

You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area.

DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.
Yes but that isn't what you said.  You basically said if you're out $300 a month because of this, you clearly make enough that $300 shouldn't matter.  It does matter, which is separate from whether or not people should have been paying attention.

No, I still stand by my original point. In the hypothetical example of someone earning 15,000 a month, losing 300 isn't a tragedy in any city. Not New York, not San Francisco, not Topeka, not Fargo.

And if you want to argue that someone making close to 200,000 is living hand to mouth, there's a delightful site called UrbanBaby where you'll be in good company.

ETA: My understanding is that the tax break only applied to the first 106,800 in income anyway, in which case the most you'll really end up losing is about 2100/year anyway, or less than 200 a month. Anyone earning above that was already taxed at the higher rate for the additional income.

pdilly2b · January 2013

jamiedsgirl:
I see this all over my Facebook - everyone blaming "Obama" for the tax "hike". Funny thing is, his administration was the one who put the tax holiday into effect in the first place! So they should really be thanking him for two years of extra money in their pockets.

This. Neither party was suggesting extending the payroll tax holiday. We are all "lucky" to have gotten it in the first place. It was intended as a temporary boost to the economy when things were really bad.

But, yes, smaller paychecks are never fun, whatever the reason. But at least this means that we won't have to look at destitute seniors begging for money on street corners.

semdkm · January 2013

We are in the same boat, and as I work in the financial industry and have been told for the third year in a row that I'm getting no raise and no bonus despite more demands, more work, etc...(and NO, I am NOT one of the sales side that ripped people off royally, and I don't make a fraction of what those people do)...I'm really tiring of working so hard only to be broke. But I'm realistic and know that this country must reap what we sew, and God knows a Republican House wasn't going to allow the rich to shoulder a burden that would make enough difference to curb THEIR lifestyle in any meaningful way.

By the way, since someone said this is the fault of the "Obama supporters"-do your research. We "Obama supporters" aren't responsible for this. How much did those Bush policies (eh hem....wars and massive tax cuts for the rich) add to (cause?) our crippling deficit? How many jobs did those massively rich people add to our economy?

mommymegan831 · January 2013

(hi, I'm the op under the name I had to make up to log on under a different computer)

thankfully they took out for 1/2 of a sick day, which I'm out of because of maternity leave, rather than a personal day, so I'm not losing nearly that much.

I may be ignorant, but I really don't pay attention to politics. I didn't know anything about this until I got my check, so I certainly didn't know it when it happened. I've been teaching for 7 years, since I was 23, so I'm not exactly sure when this happened, it seems like right when I started, so I really had no clue what I should or shouldn't be making.

MrsWindyCity · January 2013

Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me.
You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area. DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.

I don't know if anyone is "crying poverty." I'm aware it was a 2 year tax vacation, like I noted in my prior response, not a tax hike. But, obviously there are people who got used to having that extra money in their paycheck whether they were paying attention or not, and have probably incurred new expenses over the last couple of years that they used it for (like, for example, over 2 years, our DCP tuition has gone up 3 times). So, yeah, it does suck a little to get paid less, whether you're doing well or not. Plus, a lot of people haven't gotten raises and/or have had benefits cut over t he last few years, so they may be making even less than they were. Again, I'm not saying this was a surprise, but it doesn't mean some people aren't hurting from it.

jlaOK · January 2013

jf198400:
I think its stupid they ever put the temporary tax cut in place to start with. I mean it didn't seem like a big deal to get an extra $200/month at the time, but it sure seems like a big deal when you lose that $200/month. And lets face it, all it really did was put us even further into debt.

I totally agree with this. I've never understood when the goverment does things like this to "boost the economy." Can anyone really account for the extra 2% they've gotten over the last 2 years or has it just gone towards bills/life?

With the government in as much financial trouble as they are, we need to be looking at real solutions and not waste our time on things like this that don't really do any good.

Nechie122 · January 2013

MrsWindyCity:
Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.
 
It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me. 
You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area. DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.
I don't know if anyone is "crying poverty."  I'm aware it was a 2 year tax vacation, like I noted in my prior response, not a tax hike. But, obviously there are people who got used to having that extra money in their paycheck whether they were paying attention or not, and have probably incurred new expenses over the last couple of years that they used it for (like, for example, over 2 years, our DCP tuition has gone up 3 times). So, yeah, it does suck a little to get paid less, whether you're doing well or not. Plus, a lot of people haven't gotten raises and/or have had benefits cut over t he last few years, so they may be making even less than they were. Again, I'm not saying this was a surprise, but it doesn't mean some people aren't hurting from it.

Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all!

Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's.

But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount.

But I guess we can agree to disagree.

ASmallWonder · January 2013

Nechie122:
MrsWindyCity:
Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.

It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me.
You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area. DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.
I don't know if anyone is "crying poverty." I'm aware it was a 2 year tax vacation, like I noted in my prior response, not a tax hike. But, obviously there are people who got used to having that extra money in their paycheck whether they were paying attention or not, and have probably incurred new expenses over the last couple of years that they used it for (like, for example, over 2 years, our DCP tuition has gone up 3 times). So, yeah, it does suck a little to get paid less, whether you're doing well or not. Plus, a lot of people haven't gotten raises and/or have had benefits cut over t he last few years, so they may be making even less than they were. Again, I'm not saying this was a surprise, but it doesn't mean some people aren't hurting from it.
Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all! Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's. But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount. But I guess we can agree to disagree.

I do agree with this but I think what's happening with a lot of people is that several things are changing all at once and something is the straw that breaks the camel's back, kwim? Sure, the payroll tax change shouldn't make or break you. But if you forgot and weren't planning for it and you ALSO had your insurance go up in January and you ALSO found our your transportation costs were doubling. Well, even if you have money to live, all that at once can cause you to sit back and say "Holy hell - that's a lot of money gone."

Nechie122 · January 2013

elmoali:
Nechie122:
MrsWindyCity:
Nechie122:
MrsWindyCity:
Nechie122:
Come on, it's a two percent cut. If you're losing 300 dollars a month, your family is probably doing pretty well already.
 
It's all relative. If 2% of your salary is $300 in a HCOL area, it's really not like you make that much. Trust me. 
You probably didn't notice that it says I'm from New York; I grew up in the city and you don't need to tell me about what it means to live in a HCOL area. DH and I are probably losing double what the OP is, not all of it payroll tax, a lot of it related to higher insurance premiums. But I'm not crying poverty because why should anyone feel bad for me? Yeah, it sucks to pay more in taxes but anyone paying attention would have realized that the last two years were only a temporary reprieve. Now it's time to do our part to protect the solvency of Social Security.
I don't know if anyone is "crying poverty."  I'm aware it was a 2 year tax vacation, like I noted in my prior response, not a tax hike. But, obviously there are people who got used to having that extra money in their paycheck whether they were paying attention or not, and have probably incurred new expenses over the last couple of years that they used it for (like, for example, over 2 years, our DCP tuition has gone up 3 times). So, yeah, it does suck a little to get paid less, whether you're doing well or not. Plus, a lot of people haven't gotten raises and/or have had benefits cut over t he last few years, so they may be making even less than they were. Again, I'm not saying this was a surprise, but it doesn't mean some people aren't hurting from it.

Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all!

Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's.

But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount.

But I guess we can agree to disagree.
I do agree with this but I think what's happening with a lot of people is that several things are changing all at once and something is the straw that breaks the camel's back, kwim?  Sure, the payroll tax change shouldn't make or break you.  But if you forgot and weren't planning for it and you ALSO had your insurance go up in January and you ALSO found our your transportation costs were doubling.  Well, even if you have money to live, all that at once can cause you to sit back and say "Holy hell - that's a lot of money gone." 

That's fair. Point taken.

MammaBear81 · January 2013

How about be happy you had the extra $300 for the last two years? this was a "tax break" that just ended. It sucks, but you have to think of the flip side.

jalaiaa · January 2013

I heart paying taxes!

cindybaf · January 2013

I'm curbing my lifestyle, actually. I'm actually doing a spending freeze. Just groceries and necessities like car repairs or medical expenses. I work very hard, as does dh, so i thought why not save up a bit and pay down some debt. My other motivation is just to really make use and enjoy the things we have. I have not gotten my paycheck yet but I know it's going to be smaller and I'm prepared for that....

DelBride2012 · January 2013

Nechie122:

Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all! Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's. But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount. But I guess we can agree to disagree.

You can make $180k and still be living paycheck-to-paycheck without making bad spending decisions. Student loans, child care, and HCOL rent can bleed you dry. Re-paying student loans for a lawyer-lawyer couple can easily run $5-6k.

MammaBear81 · January 2013

DelBride2012:
Nechie122:

Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all! Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's. But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount. But I guess we can agree to disagree.
You can make $180k and still be living paycheck-to-paycheck without making bad spending decisions. Student loans, child care, and HCOL rent can bleed you dry. Re-paying student loans for a lawyer-lawyer couple can easily run $5-6k.

I'm going to have to disagree with you on this one. No one told you to live in a HCOL area, sure it's probably more convenient for your commute, but again, that doesn't make it a "good spending decision".

Student loans are another one, no one told you to take them out, and they aren't a requirement to go to college, again, yes it makes it faster and easier to complete college, but no one forced you to take them out and increase your debt.

Childcare, mortgages, credit debt... all the same story, no one made you spend more money than you make.

I'm not saying that doing ONE of these things is a "bad spending decision" but piling one on top of the other, yes, at some point it becomes a bad spending decision.

There are people who have hit bad times (DH and I lost 1/2 our income for over a year) but the majority of people living "paycheck to paycheck" have put themselves there weather they want to admit it or not.

DelBride2012 · January 2013

MammaBear81:
DelBride2012:
Nechie122:

Ha, it appears this is all a moot point because OP wasn't talking about the payroll tax after all! Fundamentally I agree with you, like I posted above. Wages aren't keeping pace with rising prices. My family is getting squeezed just like everyone else's. But I also did the math above and all I'm saying is this: if you're making 180,000 a year, and an extra 2,100 in annual taxes is putting you over the edge, it's time to sit down with a financial advisor ASAP and reevaluate your spending decisions. In New York, Chicago or wherever. That's not to say anyone is living large on that amount. But I guess we can agree to disagree.
You can make $180k and still be living paycheck-to-paycheck without making bad spending decisions. Student loans, child care, and HCOL rent can bleed you dry. Re-paying student loans for a lawyer-lawyer couple can easily run $5-6k.
I'm going to have to disagree with you on this one. No one told you to live in a HCOL area, sure it's probably more convenient for your commute, but again, that doesn't make it a "good spending decision".
Student loans are another one, no one told you to take them out, and they aren't a requirement to go to college, again, yes it makes it faster and easier to complete college, but no one forced you to take them out and increase your debt.
Childcare, mortgages, credit debt... all the same story, no one made you spend more money than you make.
I'm not saying that doing ONE of these things is a "bad spending decision" but piling one on top of the other, yes, at some point it becomes a bad spending decision.
There are people who have hit bad times (DH and I lost 1/2 our income for over a year) but the majority of people living "paycheck to paycheck" have put themselves there weather they want to admit it or not.

If I didn't have the student loans and didn't live in a HCOL area, I wouldn't have the income. Going to an expensive law school is all but required to get a high-paying lawyer gig.

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