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You Could Have An Eye Opening Check Next Payday
Friday, Jan. 11 is going to be a very interesting day for many people. It's the first paycheck of 2013.
We may have avoided the fiscal cliff but most Americans are going to still have to make some sacrifices -- small checks. The two per cent tax break we got for the last two years has gone away. You're paying more in taxes.
Seth Mason is with Cornerstone Financial Education. Mason told KEYE TV, "The average household here in Austin makes about $60,000 for total combined income, in that case, you're looking at about a hundred dollars lost each month."
For the average family that's $1,200 a year. It's money that's been helping the family budget.
Mason says, "That's a couple of gas tanks maybe, depending on what you drive. That might be half your grocery bill for one trip to the grocery store, depending on how big your family is".
Payroll taxes are key for financing Social Security, and the break of the past two years has forced the government to replenish the funds with borrowed money. The tax break was always meant to be temporary. About 77 percent of Americans will be affected by this expiration.
So what can you do in the short term to try and recover somewhat? Mason says, "You can review the items that you pay each month that you consider a la carte bills, cable bills, cell phone, even your insurance, stuff like that where everyone doesn't have the same plan, maybe the same coverage."
Will Congress do anything to change this? There are no signs right now, but there is worry, if people have less money to spend that can hurt the economy as a whole.
By Ron Oliveira