Social Security Tax Cut: How You Should Spend It
You may even notice it.
A cut in Social Security taxes in 2011 means you should be seeing more in your paycheck. Since it involves taxes, however, it is all incredibly complicated and makes our heads hurt. The "Making Work Pay" tax credit is inspiring, so whether you will actually end up with more disposable income is beyond our non-CPA minds to determine.
But what we can do is look at figures developed by the Brookings Institute that say how much your Social Security tax will go down according to your income level, we can ignore the whole tax credit thing, we can assume you get 26 paychecks a year, and we can tell you how best to spend the newfound cash you may be getting.