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The Fiscal Deal and you

By: Nicolette Schleisman Email
By: Nicolette Schleisman Email

GRAYSON COUNTY, TX -- With the fiscal cliff averted, what does it really mean for the average person?

Nicolette Schleisman went out and talked with a local financial advisor on how the deal may affect you.

The Income Tax portion of the Fiscal Deal that was approved Tuesday night only affects about 2% of America, but the payroll tax cut that was not renewed effects everyone.

It means over 6% of your paycheck will be taken out for the Social Security Tax, instead of just over 4%.

For people earning $30,000 a year, $600 more will come out of your pocket in 2013. A portion of which may start with your next paycheck.

"The Payroll tax holiday was always going to be temporary cause that's social security and its you're gonna have to pay it. I mean I don't like it," said Jonathan Jackson.

Another change is to the Alternative Minimum Tax which has been adjusted for inflation. So that many middle and upper income households will not have to pay the AMT.

Edward Jones Financial Advisor, Linda Rea, says she supports the AMT change.

"That will be a little less money that will go into the economy. A little less money that's going to be spent throughout the year, but the effects should be great for the average tax payer," said Rea.

Rea says there are ways for you to adjust to these tax changes. And it's important to establish and maintain a solid, diversified investment portfolio.

"It's important to look to the future. Look to the long term because there's always going to be another crisis coming up," said Rea.

Once the President signs the law, the changes will go into effect immediately.


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