The Deal is Done, But Your Paycheck Will Still Plunge - Northern Michigan's News Leader

The Deal is Done, But Your Paycheck Will Still Plunge

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While the Fiscal Cliff negotiations raged in Washington, Congress let a payroll tax holiday expire.

The Social Security payroll tax break - the source of Congressional consternation at the end of 2011 - will run out after two years. That means many people will be paying more every week: about $50 a month for those making $50,000 (and $100 a month for those making $100,000 and so on).

So while many people avoided a tax hike on this specific round of negotiations, their taxes will still be going up.

And that's an enumerated cost. There are potentially scores of problems that are invisible: workers who never got a job, orders that were never places, expansions put on hold.

9&10's Michael Kasiborski and photojournalist Jacob Johnson spoke with local accountants about the micro and macro effects of the Fiscal Cliff Deal.