The fiscal cliff has passed us: What does that mean for you?
Thu, 03 Jan 2013 00:22:19 GMT —
A deal has been struck in Washington. Now the question is, what does that mean for the average consumer?
"For a person making fifty thousand dollars, it has the effect of about twenty dollars a week so it's real money," says Certified Public Accountant, Mark Reid.
$100 a month can be quite a large amount for someone to be without, especially if they are on a fixed budget.
Greg McPherson was getting lunch on a break between flights at Destiny USA. "Our electric bill runs maybe a hundred, hundred fifty a month. That's two-thirds of that, so it is going to affect how we structure our bills over the next few months," says McPherson.
While this deal does avoid raising income tax rates on the middle class, many will still be taking home smaller paychecks in 2013.
If the total income for your family is $50,000, two percent will be coming out of your annual budget on top of what normally does. This is not new to us, as these increases we are seeing now have been around since the the start of Social Security in the 1930s.
The reason that we have not been used to these rates is due to the past two years. Two years ago, we saw a decrease in the amount that we had taken out of our paychecks. Now, we are seeing these decreases vanish. This extra $20 is going to areas such as unemployment benefits, education and social security.
For now, Greg's wife Kay McPherson will have to budget a little differently, especially when it comes to what they eat.
"I think it would affect our food budget. I think we would first of all not eat out as much. And it would definitely slow me down at the grocery (store)," she says.