State financial experts predict that funding for public colleges and schools in Alabama will be reduced by approximately $70 million a year owing to the fiscal cliff settlement. Future decisions on the budget cuts can affect the state to a greater degree. Social Security and Medicare taxes have been changed too, their reduction has expired due to the fiscal cliff settlement. In addition, the tax rates on people who earn over $400,000 and couples who make more than 4450,000 have to pay increased tax rates. Thus, all employees were influenced by a payroll tax change, as well as the wealthiest US citizens were affected by the tax rate.
Continue reading