Voice of the Voter: Payroll Tax Increase To Take Money Out Of Your Pocket

One thing voters are fuming over is the end to the pay-roll tax cuts that hit January first. That means more money will be taken out of your check starting immediately. It's a small amount to some. But for others struggling to make ends meet, it's a big deal.

No one is saying it's a perfect deal. Even the framers will admit it's not. But congress and the president have pushed through a last minute deal to avoid the fiscal cliff. That's good news right?

Not entirely. First, we're not out of the woods. Another showdown is looming. But congress did not vote to extend the payroll tax cuts meaning virtually all workers in the country will see a chunk out of their next paycheck.

We hit the streets to hear from you, the voice of the voter.

Trevor Periard says, "It's going to hurt in a lot of different areas."

Michelle Johnson agrees adding, "We get less to pay bills and pay our mortgages and gas the way it is. You need every penny you get to survive."

Johnson works at Evansville thrift store What's New. Before recently, she was a stay-at-home wife. But in the slumped economy, she says, "I had to get a job to help him out."

Now, she and her husband have this hurtle do clear.

"We have to stretch every dollar or penny that we get as it is to make it so it's going to be a blow to me and probably everyone else."

Stan Jackson who owns What's New now has to tell his employees they'll be making less. He says he'd love to pay his employees, like Johnson more to make up the difference but being a start up company he can't.

"Especially small businesses, they want to be able to give their employees and show their appreciation and be able to compensate them the best you can. But you're a start-up business so you've got to grow to that point and build up that customer base so you can provide that type of benefit so it's tough. It's tough all the way around."

Periard works in Evansville. He fears the impact this will have on everyone. "It will be lack of spending and tightening up even more so you're not going to see the flow of cash like everybody's been seeing. Not as much travel, not as much spending."

Under the deal passed this week, other changes can be expected. Tax rates are going up for people making over 400-thousand dollars a year and couples making more than 450-thousand annually. They'll be back at 39-point-6 percent... The levels they were at under president Clinton.

Itemized deductions would be capped for individuals making 250-thousand.

However, child care, tuition and research and development credits will be renewed.

Neither side is entirely happy with the deal. But voters are saying they're not happy with Washington.

"The politicians who work for us need to get a better handle on it. The old game, the big ol boys club is gone. It's really time to get a handle on it," urges Periard.

Johnson says, "They're supposed to be there to help us out and help us make it. They can't come to an agreement on anything and we're the ones who are suffering."

And Jackson says, "I want to be able to take care of my employees and, for them, out on the Hill, they got to think about the people who are affected and they've got to make decisions that are going to be best for the people. I think they need to change the focus from the game to what's really real."

Some fear, even the smallest amount of money taken out of people's pockets right now could have a big impact on the economy.

The payroll tax, by the way, pays for Social Security, an entitlement program at the center of many of the spending cut debates.