Tax Withholding Growth Slows in January
Posted on January 28, 2022 Tax withholding–the amount of income and payroll taxes withheld from paychecks and remitted daily to the U.S. Treasury–is always hard to interpret in January, being affected by year-end bonuses on Wall Street and elsewhere, but its growth has slowed this January. We measure that tax withholding was about 9.5 percent […]
Indexing of Social Security Benefits and Tax Parameters for Inflation: An Unusually Large Difference Between the Measures for 2022 With Future Effects on the Economy That Depend on How Inflation Moves
Posted on January 18, 2022 Summary Social Security benefits and many tax parameters (such as the tax brackets and standard deduction) are indexed to inflation by law. As a result, effective January 1, 2022, Social Security benefits for a beneficiary rose by 5.9 percent, and the indexed tax parameters by only about 3.1 percent. Different […]
Updated Estimates of Tax Withholding Growth Through the Pandemic: A Smaller Drop and Smaller Rebound
Posted on January 7, 2022 Summary We have revised our estimates of constant law tax withholding growth on a year-over-year basis (that is, removing certain legislative effects and comparing amounts in a month with those in the same month a year ago) to incorporate new information on the effects of tax law changes enacted in […]
Tax Withholding Jumps Sharply in December–But Largely Due to Payments of Deferred Taxes from 2020
Posted on January 3, 2022 Happy New Year, everyone. Today we received the Daily Treasury Statement for the last day of December, identifying the final amount of tax payments for calendar year 2021. Amounts of income and payroll taxes withheld from paychecks and remitted to the Treasury–what we refer to as tax withholding–jumped sharply in […]