What the "Fiscal Cliff" Deal Means to You

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General Information

Source:
NBC Nightly News
Creator:
Kate Snow/Tom Costello
Event Date:
01/02/2013
Air/Publish Date:
01/02/2013
Resource Type:
Video News Report
Copyright:
NBCUniversal Media, LLC.
Copyright Date:
2013
Clip Length:
00:01:59

Description

After President Barack Obama signs the "fiscal cliff" legislation, taxes will rise in 2013, and investment income will be taxed at a higher rate, a burden for American families who were dealt a blow from the rough economy.

Citation

MLA

"What the "Fiscal Cliff" Deal Means to You." Tom Costello, correspondent. NBC Nightly News. NBCUniversal Media. 2 Jan. 2013. NBC Learn. Web. 24 February 2013.

APA

Costello, T. (Reporter), & Snow, K. (Anchor). (2013, January 2). What the "Fiscal Cliff" Deal Means to You. [Television series episode]. NBC Nightly News. Retrieved from https://archives.nbclearn.com/portal/site/k-12/browse/?cuecard=62430

CHICAGO MANUAL OF STYLE

"What the "Fiscal Cliff" Deal Means to You" NBC Nightly News, New York, NY: NBC Universal, 01/02/2013. Accessed Sun Feb 24 2013 from NBC Learn: https://archives.nbclearn.com/portal/site/k-12/browse/?cuecard=62430

Transcript

What the "Fiscal Cliff" Deal Means to You

KATE SNOW, anchor:

Back now to the congressional deal on the fiscal cliff. It will hit home for every American in the New Year. NBC’s Tom Costello now with more on what it means for you.

TOM COSTELLO, reporting:

Regardless of your income, your taxes are sure to rise in 2013. With the Social Security payroll tax holiday expiring, those taxes will go up 2% back to where they were in 2009. That means the Armstrong family, making $50,000 a year--close to the national median--can expect to pay another $1,000 a year in taxes. While though Smith family, earning a $100,000, will pay an extra $2,000 a year. Craig Carnick is a certified financial planner in Denver.

CRAIG CARNICK: There is no question that the extra $100 a month-- 150 a month will hit the average American in the pocketbook. But the good news is that inflation is under control, gas pump prices are down.

COSTELLO: Still, many Americans who've struggled through a rough economy have counted on that extra 2%.

GREG MCBRIDE (Senior Financial Analyst, Bankrate.com): There are a lot of people that the only pay increase they saw in the last two years was that payroll tax holiday. Now that it's going away, it's going to squeeze consumer buying power.

COSTELLO: Other tax changes--higher income families will lose some of their deductions, and families earning more than $450,000 will see their top tax rate go up to 39.6%. Their investment income will also be taxed at a higher rate. The good news for business owners, the full package of temporary tax breaks will be extended for yet another year. With more certainty in the tax code, Wall Street rallied today--a good day for most families with retirement investment accounts. In Chicago, mixed reaction to America’s newest tax plan.

MAN: Nobody wants any money coming out of their paycheck. But you got to pay for stuff.

WOMAN: I think these are all just temporary bandages, I don’t think they're really going to help.

COSTELLO: One note of caution. Accountants say it could take weeks for companies to adjust employees’ paychecks to the new law. The first few paychecks could be higher than checks a month or two down the road. Tom Costello, NBC News, Washington.