Thank the Government and not your boss for your raise.

The Tax Relief Act did more than allow the rich to stay richer. It also gave employees a raise.

How? Well there is this thing called payroll. Your employer is obligated to match your social security tax to the tune of 7.56% of your net income. You pay 7.56% and the Boss pays 7.56%. What the Tax relief act did was decreased the amount you pay in social security tax to 5.56%. Your boss still has to pay the 7.56%.

Since you pay less in taxes your income increases. Your income only increased by 2%. 2009 only 10% of the professional workforce did not receive a raise (1). Hewitt Associates reported that 50% of the U.S. Employers are cutting raises (1). Something is better than nothing.  How do you think reducing the social security tax on employees will affect the economy? Would giving employers the same brake on the tax help the economy  or make a difference?

(1)    Workforce.com (http://www.workforce.com/section/news/article/someone-is-getting-raise-perhaps-not-you.php)