Fiscal cliff could cause shrinking paychecks for all - KXXV-TV News Channel 25 - Central Texas News and Weather for Waco, Temple, Killeen |

Fiscal cliff could cause shrinking paychecks for all

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WACO -

With a fiscal cliff steadily looming the big question that's on everyone's minds is how will the tax increases affect your wallets?

People like Robert Morgan and his family are bracing themselves and their budgets for the fiscal cliff. Morgan and his family run the Hillcrest Chiropractic Center in Waco.

"A lot of things that we are planning we have to put on hold," Morgan Said. "We were going to New York, this summer but we put that on hold,  just to see what is going to happen."

You've heard it all before. Taxes could increase for everyone, but what could it mean for your paycheck?

According to the Non-partisan Tax Policy center a family that makes $30,000 a year could have fork over one hundred bucks more in taxes. An $80,000 salary could mean paying three hundred bucks more.

Michelle Downs, a partner at Patillo Brown and Hill accounting firm crunched the numbers in tax brackets.

"Last year you could have been paying 10 percent in federal taxes you could be paying 15 percent. That's a pretty big jump for people," Downs said.

Let's not forget social security. Everyone is expected to pay two percent more in Social Security taxes. Meaning, If you get a two percent raise in January, you certainly won't feel it in your pockets.

Despite the uncertainty downs says whatever you do, don't panic! If congress strikes a deal in January employees could get reimbursed from tax hikes. Still be cautious of what you spend, and put back every month, especially if you have a family.

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