Americans Shocked by Smaller Paychecks
Gabriella Hoffman. “Gabriella Hoffman, a 21-year-old Virginian who works at a nonprofit, her paycheck is a little lighter today thanks to a payroll tax increase that is forcing millions of Americans to make the kind of tough budget cuts their representatives in Washington lawmakers seem unwilling to tackle.” Well, see, Obama explained in his press conference the debt limit isn’t about new spending. Raising the debt limit isn’t about spending at all. It’s just about paying bills.
He’s gonna raise the debt limit to pay for what we’ve already spent, but there’s no new spending in the debt limit. (Well, it’s what he said.) Gabriella Hoffman is 21 years old. As I say, she works at a nonprofit. She “estimates her paycheck will be roughly $30 less this biweekly pay period, or about $780 annually, thanks to the end of a two-year cut on payroll taxes, which fund Social Security. The tax has risen back up to 6.2% from 4.2%, costing someone making $50,000 annually about $1,000 per year and a household with two high-paid workers up to $4,500.”
Look, can I take a brief moment? I want to explain this to you. I’ve gotten in trouble… Well, not really trouble. It’s just people think I don’t know what I’m talking about every time I’ve explained this. The common way of understanding the Social Security or payroll tax is that your employer pays half and that you pay half. And your half is 6.2%, and the employer matches it at 6.2%. In reality, you are paying it all. (New Castrati impression)