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Many Investors Still Not Aware of Payroll Tax Cut

Many Investors Still Not Aware of Payroll Tax Cut

A recently released survey from John Hancock Financial Services found 30 percent of taxpayers remain unaware that they are bringing home more money due to the payroll tax cut.

According to the survey, that figure represents a slight increase over last year, despite media coverage of the

A recently released survey from John Hancock Financial Services found 30 percent of taxpayers remain unaware that they are bringing home more money due to the payroll tax cut.

According to the survey, that figure represents a slight increase over last year, despite media coverage of the payroll tax debate. The study, which was conducted by an independent research firm, included responses from more than 1,000 investors between February 13 and February 24.

The findings from the study also included the fact that 20 percent of taxpayers said they were more likely to spend the checks they take home than they were last year, while the percentage who said they planned to save the money dropped from 29 to 22 this year.

Reducing debt, contributing to retirement plans at work and investing in retirement plans outside of the workplace were the major ways taxpayers spent their checks, according to the survey.

Bloomberg reports a recent estimate from the Tax Policy Center found the average tax rate for the middle 20 percent of families in the U.S. will be 15.9 percent in 2015.

Comments

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

For us living in Illinois, a two percentage point rise in our State income tax rate offset the FICA reduction. Inflation in food and fuel prices have made the issue worse. Finally, most of us change our patterns for changes deemed "permanent", but not for "temporary" measures. Our "temporary" tax measures are poor policy.

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