Fiscal cliff deal means higher taxes

WIVB.com

Posted by: Eli George

Updated: Jan 2, 2013 11:18 PM

BUFFALO, N.Y. (WIVB) — You may be heaving a sigh of relief knowing that America is back from the brink of the fiscal cliff. But in spite of the deal lawmakers passed, 77 percent of Americans will be paying higher taxes.

Robin Sessamen is going to take home about $37 less per month.

"$37 is a big deal to somebody like me. That's extra gas money. I mean, I got a fuel efficient car. $40 is a full tank of gas, and sometimes you're living paycheck to paycheck," Sessamen said.

EXTRA | Find out how much money you'll be out each year here

The paychecks will be smaller starting this month because for the past two years, the government gave Americans a break during the recession, only taking 4.2 percent of earnings out for Social Security tax. But now the payroll tax is going back up to 6.2 percent. So whatever you earn, you can expect to take home about 1.5 percent less.

Mike Zeis said, "I think it's fair. I think people have to do their fair share. I mean, 1.5 percent we contribute. We've dug ourselves into this mess, so I think it's fair that everyone takes part in digging us out, you know?"

In Erie County, the median household income is $45,000, and a family in that tax bracket will take home about $48 a month less.

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