The law governing Social Security taxes mandates a contribution rate for employees and employers of 6.2 percent of wages below a level just over $100,000.
Two years ago, workers were given a break with a temporary reduction of 2 percent, giving them a bit more money to spend. That break was extended a year ago. The result was a smaller collection of funds into the Social Security Trust Fund, which has the potential of harming the longevity of that fund.
The expiration of that break is not a tax increase, as many would have you believe, but just a return to the levels mandated in the law.
Anyone who based their long-term spending habits on that reduced rate made a big mistake, because the break was clearly stated to have a short life when it was given.
Moaning about losing this gift is the wrong thing to do, because no one is really increasing your taxes. Face facts your retirement future may well depend on paying the full rate mandated by law.