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"Fiscal Cliff" Deal Leads to Payroll Tax Hike

Although Congress took action to keep the nation from careening off the so-called "fiscal cliff," all Florida taxpayers will still see larger bills this year. The increase will come in payroll taxes.

As part of the "fiscal cliff" deal, Congress voted to allow the 2010 deduction in the Social Security tax to expire. An economist with the University of Central Florida says that's expected to cost Floridians about $6.5 billion.Sean Snaith told the Herald/Times Tallahassee Bureau more than 7 million Florida households would see a tax increase and that would cause the state's economy to shrink. Workers will start to see the impact this month as the payroll tax increases 2% back to 2010 levels.

The median Florida household earns $45,000 annually and could pay up to $900 more in taxes this year.

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