Payroll taxes increase to 6.2%.
Everyone's paycheck is about to take a hit, and it's not the boss' fault. But some business owners say it's a tough talk to have.
The rate of workers' payroll taxes, which fund Social Security, has been 4.2% for the past two years. As of Jan. 1, it's back to 6.2%, on the first $113,700 in wages.
That forced Mike Brey, who owns four Hobby Works shops near Washington, D.C., to notify his store managers about the upcoming change during a conference call Monday. He called the experience uncomfortable. "These are the people who can least afford it."
Some employees will blame Mr. Obama and the Washington Democrats. Some will blame Washington Republicans for caving in to the tax and spend Democrats.
Actually there is enough blame to go around for everyone on Capitol Hill.