Going Off Fiscal Cliff Could Mean less Money In Kansans Pockets

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There are just four days left before the Fiscal Cliff deadline passes and national lawmakers are back on the job in Washington, D.C.

Kansans are taking note of what that could mean on their budget should negotiations fail. People like Kathy Wilhelm tell KAKE News she and her husband will see $200 less every two weeks.

That's not chump change to people like Cassie and Ron Reichenberger. "Tighter budget, less money. Can't play as much." say the Reichenbergers.

The Brookings Institute Tax Policy Center say Social Security payroll taxes would climb by 2% from 4.2 to 6.2 each paycheck. It's estimated a $40,000 annual earner will have $60 less monthly from that change alone.

Overall, average middle income earners could have $2,000 less yearly with tax increases. Jean Turner, owner of Tax Wise says many people who have not paid any taxes for several years may find themselves paying more taxes than they have in the past.

"My clients right at this time are asking me what should they do before January 31st? And should I go ahead and sell a piece of property now or sell it later?" says Turner

Some clients are wanting to take a capital gain this year because the rate could be higher next year, according to Turner. As for making a charitable gift now or next year, she says for most people it's not going to make enough of a difference to change their tax bracket. The bottom line is, changes are coming.


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