Friday, February 8, 2013

New York Times Realizes New Taxes Hurt Poor the Most


Katie Pavlich - When many Americans received their first paycheck of 2013, they wondered why their paychecks were smaller. Obama supporters in particular were baffled, wondering why they were seeing less pay when they had just voted for a President who promised they would never see a tax increase, that after all was reserved for "rich" people. The first Friday in January, Google was flooded with the question, "Why is my paycheck smaller?" Workers took to Twitter and asked the same question.

Now, even the New York Times is realizing who the the newest payroll taxes hurt the most: poor people.

Jack Andrews and his wife no longer enjoy what they call date night, their once-a-month outing to the movies and a steak dinner at Logan’s Roadhouse in Augusta, Ga. In Harlem, Eddie Phillips’s life insurance payment will have to wait a few more weeks. And Jessica Price is buying cheaper food near her home in Orlando, Fla., even though she worries it may not be as healthy.

 Like millions of other Americans, they are feeling the bite from the sharp increase in payroll taxes that took effect at the beginning of January. There are growing signs that the broader economy is suffering, too.

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