Azalia Volpe (J.C. Rice)
Nessim Halioua (J.C. Rice)
We avoided the fiscal cliff — but Washington’s remedy has sent New Yorkers over the edge.
Congress’ 11th-hour deal did nothing to stop a scheduled increase in payroll taxes — resulting in the feds getting more of Americans’ hard-earned wages to pay for Social Security.
The federal tax jumped from 4.2 to 6.2 percent on all income up to $113,700.
President Obama and Congress had lessened the burden in 2011 and 2012 in an effort to breathe life into the flagging economy. The temporary cut was worth about $1,000 for a household earning $50,000.
But neither Dems nor Republicans were on board to extend the break this time around.
Instead they touted the New Year’s Day tax package — called the American Taxpayer Relief Act — for raising the income tax for individuals earning $400,000 and couples raking in more than $450,000.
Gov. Cuomo claims the deal will hit the economy with a “substantial contractionary sting” and reduce annual growth by half a percentage point.
But it’s the average family that has the most to gripe about.
Dean Mortilla, 44, a Staten Island insurance broker, said he’s losing $60 to $75 a paycheck because of the Social Security tax hike.
“The economy was starting to get better, but this puts everybody five steps back,” said Mortilla, who has a wife and daughter.
He stopped contributing to his 401k to make up for the pay cut.
Glenn Nocera, 38, a campus cop who earns about $50,000 a year, is losing $30 per paycheck.
“It’s bad enough when you live in New York state, where you’re taxed to death,” said Nocera, president of the Brooklyn Young Republican Club. “It makes you feel like you’re not getting ahead in life.”
Here’s how city workers are coping with the tightened take-home pay.
Mental health counselor, $35,000 LOSS: $80 a month
Tyrone Brown, 46, is feeling the tax pain so his kids don’t have to.
The single dad of three said he’s declining dinner and happy-hour invitations so his 16-year-old son has an allowance.
“I don’t let the economy affect him,” said Brown, who works at a mental-health clinic in Brooklyn.
“I only let the economy affect me.”
Brown says losing up to $80 a month is cutting into his monthly MetroCard purchase — and he has had to choose between seeing a movie or having a subway ride.
“I thought Obama was supposed to save us,” he said. “I thought the rich [were] supposed to get taxed. I know everything went up, I just want to know why. ”
Maintenance worker, $42,000 LOSS: $90
Now he can only afford one beer after a long day’s work.
Danny Rodriguez, 52, predicts he’ll lose about $1,000 a year from the Social Security tax increase.
“If I had a family, forget it,” said Rodriguez, a single Queens maintenance worker. “I just cashed my check, and $30 extra has been taken out.”
He just got a raise — but says he still earned more last year when you factor in the tax hike.
To cope with the cash cut, Rodriguez says he’ll shop at 99-cent stores to find cheap deals and will get his hair cut once a month, instead of every two weeks. He’ll also have trouble tipping his waiters and bartenders.
“I used to have a few beers,” Rodriguez said. “Now I can only have one.”
Student/waiter, up to $39,000 LOSS: $200+
First he lost a chunk of his bonus, and now this York College student will forfeit his social life.
Queens resident Ronald Soutar, 25, makes up to $750 a week waiting tables at Tommy Bahama, a flashy bar and chain restaurant on Fifth Avenue known for its “world famous coconut shrimp.”
Last year, he was thrilled to get a $650 bonus, or about $388 after taxes. Now he expects his next big commission for the same amount to be axed even more.
“My social life has come to a halt,” Soutar said. “In December, January and February, [I’ll] save up to procure a good lifestyle and put me in a good state of mind.”
Nonprofit worker, $37,000 LOSS: she can’t even look
Laurie Lenniger’s nonprofit job brings her to local concerts, where she works late nights signing young people up to vote.
But at the end of the day, she’ll opt for a sketchy, after-midnight subway ride home to Brooklyn rather than dishing for cab fare.
The single activist (right), 26, who gets paid once every two weeks, hasn’t been able to face her readjusted wage.
She already knows the likely $30-to-$40 cut will prevent her from getting to know her colleagues.
“Lunch time is when we can hang out and chat,” Lenninger said. “We are already discussing bringing our lunches from home. This will have an impact on being social.”
App developer, $63,000 LOSS: $100+ a month
Brooklyn programmer Nessim Halioua, 34, is getting creative to make up for higher taxes — even if it means saying goodbye to the Yankees.
Instead of paying to see the Bronx Bombers, this baseball addict will try the minor-league Brooklyn Cyclones. Instead of ordering delicious craft beers, he’ll snag cheap cans of PBR to save a few bucks. And he’ll also consider hitting the basketball court instead of the gym.
“It’s a troubling time, but you have to find solace in your troubles and make it into something positive,” said Halioua, who shares an apartment with his girlfriend.
Halioua said he’s started cooking for himself for nearly every meal and considers dining out irresponsible.
“You have to think about who’s going to struggle with [higher taxes],” he said. “Someone who makes a lot less is going to feel it a lot more.”
The programmer even has a frugal vision for his next big vacation.
“Instead of planning your trip around the Amalfi Coast, how about Colonial Williamsburg? Or Niagara Falls, instead of searching around the world?” Halioua said. We’ll stay in the US,” he said. “Places here bring just as much enjoyment.”
Senior sales manager, $90k w/commission LOSS: $120-$150
Donna RIChardson, 50, will miss going out with gal pals the most. A divorcee and mother of three, she said the cuts to her paycheck mean even less of a social life.
“I got really hit by this tax garbage,” said the Westchester resident. “When I saw it, I thought it was a mistake. Then I found out it was happening to everybody.”
Richardson’s twin son and daughter just started college, and she has a freshman daughter in high school still living at home.
Once or twice a week, she drives 50 miles from her home to Manhattan, where she works as a senior sales manager, booking conventions for executives.
The job earns her between $50,000 and $90,000 annually depending on commissions, and every penny counts for her kids.
“I work hard for every dollar I get. I have two kids who just started college and I have to pay both their tuitions,” Richardson said.
“I can’t even consider a stay vacation,” she added. “I am going to have to give up having lunch with my girlfriends on the weekends.”
Investment broker, $1M+ LOSS: Thousands
Peter Schiff, 49, is the CEO of Euro Pacific Capital, an investment firm. He gets hit by both the Social Security hike and the repeal of the Bush tax cuts for individuals making more than $400,000 a year (which went from 35 percent to nearly 40 percent).
Schiff says he’ll spend a fraction of what he used to on investments, pumping less cash into his and other people’s businesses — leading to fewer jobs.
“In my tax bracket, for every dollar, I will make 50 cents,” Schiff said. “That means half my income will go to taxes.”
“I make a lot of money compared to some people, I make more than a million. I spend a small fraction of what I earn. For me, it will reduce the amount of money I save and invest.”
Fellow millionaires will have more of an incentive to prefer leisure to work, he said.
For example, Schiff might be more willing to lease a fancier office or car as a tax write-off — increasing expenses and therefore lowering his income and tax burden.
“Society loses because more money is sent to the government to be spent,” said Schiff, a former advisor to Ron Paul and a US Senate candidate in 2010. “Instead it would have been money used to grow the economy.”
Hearing officer, $75K LOSS: $150 a month
She’s digging deep for her kids’ diapers — and cutting her 401(k) for day care.
“The cut was huge,” said Azalia Volpe, 45, a Staten Island hearing officer. “About $75 per paycheck. That’s one of my student-loan payments!”
This married mom of two tots says losing $150 a month to Social Security taxes is taking a toll on how she cares for her babies, a 3-year-old boy and 1-year-old girl.
Volpe even considered quitting her job and going part time at one point to save on child care. After a nanny demanded $700 a week in cash, Volpe settled on a $500-a-week day-care center.
“It may not seem like much, but we’re paying for diapers, wipes, all the little accoutrements that these little beings take up,” she said. “It’s the difference between Pampers and Luvs.”
She said she’s cut back on her 401(k), slashing her contribution from 7 percent to 3.5 percent, to make up for a reduced income.
Now she’s cutting coupons and only purchases items on sale.
She recently bought her daughter a $100 coat for $40, picking a larger size and praying it will fit her next year.
“Things I would never think about — now I do,” Volpe said. “I had to make sure I could take the coat back. I used to just deal with winter when it came.”