Despite A Deal On Fiscal Cliff You Can Expect To See A Smaller Paycheck
Written by Your 5News Team
Last updated on January 02, 2013 @ 7:20PM
Created on January 02, 2013 @ 6:29PM
Despite lawmakers coming to a deal on the fiscal cliff you should still be ready to see a smaller paycheck.
That's because their deal didn't extend cuts to the payroll tax rate. That means everyone who has a job should expect a two percent cut from their paychecks.
The government had temporarily lowered the payroll tax rate in 2011. They did that to keep more money in your pocket in an effort to boost the economy.
Two percent might not seem like a lot, but for someone earning $30-thousand will lose about $50 a month. Families making $50,00 will lose about $1,000 a month from their checks.
The biggest concern from economists is how it'll impact consumer spending.
The cuts will come out the part of your check that says "FICA", or social security. That's because that's what that money will go towards.
If you're looking for ways to save money financial experts suggest taking a look at your small purchases. For instance if you buy a cup of coffee for $1 everyday try getting one every other day. That move should save you about $180 a year.
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