How fiscal cliff deal is affecting local area
Everyone earning a salary will be affected in some way
Lafayette, LA (KADN) — With talk of the fiscal cliff deal in the air many are left wondering how this will affect residents around Acadiana. Head of Political Science Department at UL, Professor Pearson Cross, says this deal made by congress will affect just about everyone that works for a living. If you are earning a salary, you will see your withholding taxes go up by two percent. So taxes will go up for about 77 to 78 percent of Americans, but the good news is the changes will be very subtle.
"The vast majority of people, your taxes will stay about what they are except for that payroll withholding. So it raises money, it doesn't raise that much money, but it is a tax deal that was a bipartisan deal. Although frankly, more democrats in the House supported it than Republicans," says Professor Cross, head of Political Science Department at UL.
Professor Cross says the changes will not be abrupt, but very gradual. Those making around $50,000 a year will lose about $1,000 compared to last year which is about twenty dollars less a week, but compared to what everyone would have suffered if congress had not reached a deal is far more considerable. Professor Cross says the worry of the fiscal cliff is over, but now the government must tackle the second step to this long awaited process.