Fiscal Cliff Effect
Updated: January 2, 2013
A plan is now in place making the wealthy pay more income taxes. But if you earn a paycheck...your taxes are going up too.
It's a number you may not look at on your check but when you bring it to your bank to deposit it...it's going to be a little smaller.
Here's why.
Social Security Payroll Taxes are going up two percent. that's because the temporary reduction in that tax expired.
Here's what it means. If you make $50,000 a year, you will pay an extra $100,000 more a month.
We sat down with accountant Kim Martin. He says his phone has been ringing off the hook. People are trying to understand what last night's vote all means.
He told me he's learned over the years, we have no control over what the tax rates are going to be. we have to prepare.
"They should plan the best economic and savings program for themselves. Save money where they can, build their own portfolio, maximize their pension opportunities and just be a good steward of their money," Kim Martin said.
Lawmakers say this is just the start to digging our country out of trillions of dollars of debt.
This fiscal cliff fight is behind us but lawmakers are getting ready for another one.
As of Monday our country reached it's borrowing limit so now Congress has two months to raise our debt ceiling.
So how did our local congressmen vote last night?
Republicans Tim Johnson, John Shimkus, and Aaron Schock all voted yes along with ten other house members. Four republicans voted no.
