2013 is underway, along with payroll tax increases.
Financial Advisor Bryan Kelly says everyone will notice lighter wallets as taxes revert to rates that existed before the 2010 stimulus package.
"It was only for 2011, 2012. It's now reverted back to the old tax. It was 6.2%, it went to 4.2% and now it's back to 6.2%. But every individual that's employed is gonna start feeling the impact of that immediately on their paychecks," he says.
Everyone who is employed and paying taxes will feel the change.
Kelly says
That's the take home pay for the average American family, and the amount withheld will vary based on income.
Mark Young, a Veteran, says the difference of nearly a thousand dollars a year would be better spent in the hands of the American people.
"They'll see about $19 a week specifically on a 50,000 a year income that'll be coming out of their paycheck to taxes rather than to take home."
"Both parties are not serving us well. We're overtaxed and we're overspending. No American family, and no business can exist that way," says Young
David Troxler says tax cuts of 2011 and 2012 were a gimmick for elections.
"Taxes have to be paid to some extent but we need to sort of reduce spending that you're not gonna stifle the economy. That's the real issue," says Troxler.
Troxler says there's still uncertainty within the small business community.
"The only way we're ever gonna try to balance the budget is to have economic growth. All the tax increases and all that are not gonna do that. We need more realistic economic policies," says Troxler.
Young says American families will need to work within a budget as they get by on less income.
"It's gonna cause the average American family to tighten their belt even more, to be more frugal, to budget. Budget!" says Young.
In Chattanooga, Brittany Shaw, WDEF News 12.
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Of course, the less money you make the more money you probably have to spend.
You can get free budget counseling from the Partnership for families, children and adults' consumer credit counseling services.
Find out more information, visit
http://www.partnershipfca.com/www/docs/134//Counseling%20&%20Support%20Services
