First paycheck of year holds surprise for some

January 9, 2013 8:07:19 PM PST
About a week into the new year and many people are noticing their first 2013 paycheck is looking a bit slimmer.

It actually dropped about two percent. A recession time tax reduction expired when the ball dropped for 2012, and now the original amount being taken out for Social Security is back to where it was two years ago. Now, 6.2 percent is being taken about versus the roughly 4.2 percent.

"It's pay now versus get back later," said Mike Walden, an economics professor with N.C. State.

Walden said that two percent is going into Social Security, which he said needs all the money it can get right now. It's something working Americans will benefit from eventually.

"So this will help people down the road so to speak when they retire although they're having to pay for it now," said Walden.

So while it may give Americans less money to play with now, which can have a somewhat negative effect on the economy, in the long run, Walden said people will experience the upside.

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