source http://www.huffingtonpost.com/2013/01/02/payroll-tax-hike-minimum-wage-increase_n_2396681.html
"WASHINGTON -- Many of the nation's poorest workers were looking forward to a modest pay hike on New Year's Day, when 10 states implemented higher minimum wages.
In the end, those workers' increased earnings may have lasted all of a few hours.
The deal approved by the House of Representatives late Tuesday to avert the so-called "fiscal cliff" did not include an extension of the payroll tax holiday, effectively hiking by 2 percent workers' payroll tax contributions which help pay for Social Security. For many minimum wage workers who are receiving a wage increase this year, the higher payroll tax will offset much or all of the potential gains they anticipated in the new year.
According to the Wall Street Journal's payroll tax calculator, a worker who makes $15,000 a year -- roughly the salary of a full-time, minimum-wage worker in most states -- will pay an additional $300 in payroll taxes this year under the deal struck by Congress and the White House.
That $300 is roughly equal to the additional earnings that minimum wage workers would have gained in most of the 10 states boosting their wage floors, according to an analysis of the increases by the National Employment Law Project (NELP), an advocacy group for low-wage workers.
In Arizona, for instance, the 15-cent wage hike to $7.80 translated into an annual raise of $320 for a worker maintaining a 40-hour week. In Colorado, the 14-cent raise to $7.78 meant an additional $310."
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