Social Security tax increase: With 2013 comes paycheck cut due to Social Security tax increase

Absorbing the tax increase, how will you cut back?

BOCA RATON, Fla. - Friday was the first big pay day of 2013, and it included a 2% higher Social Security tax.

For many people, that means using less gas, buying less food or going out to the movies less often. Rachel Taliento plans to cutback on all of that, and she's starting at the grocery store.

"Obviously it was in the back of my mind while I was shopping today, maybe I shouldn't get that extra food," says Taliento.

The mother of two noticed about $40 less on today's paycheck.

"That's a 2% difference, a big difference. If you add that up over a month or a year, that's a lot of money," says Taliento.

If you make $50,000 a year, you'll see $40 less per paycheck. If you make $30,000 a year, you'll see $25 less.

"People who live paycheck to paycheck will notice and unfortunately there are a lot of people living from paycheck to paycheck these days," says economist Bill Stronge.

Stronge argues now is not the time for the tax hike. It's a tax that was once suspended as part of the federal stimulus package. He says our economy is too fragile  to reinstate it.

"It seems to me that it's more important for us to grow than it is for us to balance the budget right now," says Stronge.

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