JEANNE MESERVE, CNN ANCHOR: It's Friday, and for many workers, the first payday of the new millennium, and depending on who you are and what you make, the government is readjusting what it takes from your paycheck. CNN's Brooks Jackson explains.</s>BROOKS JACKSON, CNN CORRESPONDENT (voice-over): The fireworks are over, the year 2000 is here and now the first Y2K payday. How much is Uncle Sam taking this year? (on camera): Well, because of Washington gridlock, taxes this year look pretty much the same as taxes last year. Even so, some changes are taking effect this month. (voice-over): Social Security pensioners who work can get bigger paychecks without losing benefits. The earnings limit last year was $15,500. This year, it goes up to $17,000. And for student loans, more interest becomes deductible. For interest paid last year, the most that can be deducted is $1,500, but that goes up to $2,000 for interest paid, this year. Inheritance taxes ease up. For anyone who died, last year, the exemption was $650,000, but anyone who dies this year can pass on $675,000, tax-free. High-salaried workers will pay a little more in Social Security taxes. Rates stay the same but more income is subject to tax. Last year, income was taxed only up to $76,200. This year, Social Security taxes stop coming out after $76,600. (on camera): But what Congress takes away with one hand it gives back with another. High-salaried workers will be able to put away $500 more in tax-exempt 401(k) retirement plans, this year, and small business owners will be able to write off $1,000 more of what they spend on computers and such. (voice-over): And so it goes, small changes here and there. Those Y2K paychecks look mighty familiar. Brooks Jackson, CNN, Washington.
First Payday of New Millennium Shows Few Changes in Workers' Checks