wealthwire.com / By Brianna Panzica / Friday, February 1st, 2013
Washington’s last-minute fiscal cliff deal managed to stop the hikes and budget cuts that the nation feared could send us spiraling into another recession.
But as many have by now realized, this temporary fix didn’t mean everything would stay the same. Anyone with a paycheck will have noticed the 2% decrease in salary after taxes. Part of the deal was a decision to allow a cut in Social Security taxes to expire, raising the rate from 4.2% to 6.2%.
Although 2% may not seem like a lot, it has been enough to make a dent and cause some people to reconsider where their income is distributed.
Charities may be the first to take a hit from this. According to a poll conducted by Ipsos Public Affairs, one in five Americans plan to reduce their contributions to charitable organizations this year as a result of the payroll tax hike.
Poll respondents plan to reduce their contributions by an average of 29% this year. Roughly 21% said they would not donate at all in 2013.
It’s going be tough for charitable organizations that rely on these donations to operate.