Millions of Big Earners Should Expect Higher Payroll Taxes in ‘17

For those who have been excited to see their tax bill go down under a Trump administration, there might be cause for some concern, especially for some of the country’s highest earners. That’s because for the millions of workers who pass a certain threshold a tax hike is coming. So why the increase?
First, this change was in place before President Trump won the election in November. This scheduled change comes in the form of an adjustment to Social Security payroll taxes, and it will affect a lot of high earners. Over the past several years, workers have paid a 6.2 percent payroll tax to Social Security, which is matched by employers and automatically deducted from their paychecks.
That number will remain the same in 2017, but there is a catch. It used to be that workers only paid that amount on the first $118,500 they earned for the year. This year, that threshold increases to $127,200. That will amount to hundreds of dollars for anyone affected. Meantime, for self-employment workers, the news is even worse because they are forced to pay the full Social Security tax themselves without splitting the cost with an employer.
So how many people are we talking about? Anyone that makes less than $118,500 won’t be affected but the estimated 12 million workers that make more than that will see a hit, which amounts to one of the biggest changes in the tax code in nearly 30 years.
http://time.com/money/4628475/payroll-taxes-social-security-2017/
You’ve Got to Start Somewhere
You’ve Got to Start Somewhere How do you get to where you want to be? Should you plan out your course from start to finish and calculate every step of the way before you begin? Should you know exactly where your path is going to lead before you begin your journey? The answer might depend…
Time to Add These Watches to Your Collection?
Time to Add These Watches to Your Collection? Rolex, Audemars Piguet, Tag Heuer, Vacheron Constantin, and Cartier, these are just a few of the most well known high-end luxury watch brands in the world. Owning a few expensive luxury watches is common amongst most high net worth individuals, but for some collecting multiple rare and/or…
How to Plan for a Trump Presidency
How to Plan for a Trump Presidency Did you hear the news? America has elected Donald Trump as the nation’s 45th president. So, unless you’ve been in a coma or hiding out in a cave in the middle of nowhere, then you already know that. It’s also very likely that you’ve already started to wonder…
Have You Considered Art Investment Funds?
Have You Considered Art Investment Funds? What makes a piece of art truly great? Is it the art itself, or is it the artist who created it? Is art great because of its culturally iconic status, or because of what it represents? Art, after all is very subjective and what one person feels is worthy…