How the Fiscal Cliff Agreement Affects You

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A fiscal cliff agreement was finally approved late on New Year’s Day. Wealthy Americans will be hit hardest by the deal, due to a 4.6% increase on income taxes for those with incomes over $400,000 (single) or $450,000 (married). A new investment income tax of 3.8% will be levied to help fund Obama’s health care initiative, affecting those with income over $200,000 (single) or $250,000 (married).

While these high income workers represent the minority, all workers will face higher payroll taxes in 2013. The deal did not renew the 2012 payroll tax holiday. As a result, worker’s will pay a 6.2% Social Security tax, an increase of 2% over 2012 tax rates.

How many of you are familiar with the fiscal cliff deal?

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Jenni currently works with Adecco’s global Information Management team as a Business SME on the Candidate Management Programme - Social Media. She’s been with Adecco’s Professional Staffing division since 2010 and held roles in on-boarding and compliance, client account management and technical recruiting. In her free time, she enjoys traveling, spending time with family and friends, yoga and working with an animal rescue group.

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