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Impact of payroll tax holiday expiration

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    Take-home pay expected to decrease for many workers

  • Duration 2:36
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Lawmakers last minute fiscal cliff deal may have saved the middle class from a major tax hike but.

With the expiration of the payroll tax holiday and other add -- Plenty of Americans will still receive smaller paychecks in 2013.

Chief Washington correspondent James Rosen explains.

-- the world's largest drive in restaurant the varsity serving Atlanta and since 1928.

Some patrons seemed quite aware that taxes will go up this year including from many who were not rich.

I don't know you know every detail but I have heard that.

Take home pay will.

-- lose this this is the payroll taxes you know that takes more out of my weekly check.

Indeed the fiscal cliff deal cut by the White House and congress allowed to expire the 2% cut in the federal payroll tax that all workers enjoyed last year meaning an estimated 77% of US households will see their federal tax bill increase in 2013.

And new taxes.

That came in and health care law -- going into effect so when you add those soon.

The taxes are gonna be a good deal higher in 2013.

Ten and 2012.

Those making just twenty to 30000 a year will see their tax bill increase on average by about 300 box and all that goes up -- tax bracket food chain.

-- those clearing 75 to a hundred grand a year getting slapped with an average -- of 12100 dollars and those earning between two and 500000.

Forking over an average of nearly three grand more.

At the varsity Fox News found some folks taking this news with a relative equanimity.

And others well not.

If it solves the emissions problem of deficits -- -- -- -- I'm not happy with that but I'm gonna happen on live with a but when these congressmen come up for reelection when he Ford today.

I'm gonna do my best to put somebody else in office committee spoke of scaling back will probably.

Put a little sharper pencil for our personal budget on luxuries and necessities like that cut back on a lot of and it's time in a lot of big cases.

Traveled commuting with fellow coworkers to save gas.

-- -- you know conserving energy between us we have seven children four of them are college.

And right now we're barely struggling to make ends.

One provision of the Obama care law taking effect this month limits the deductions the taxpayers can take from medical expenses.

More than a third of the taxpayers who've taken advantage of these affected deductions.

Have adjusted gross incomes of under 75000.

The year.

-- James thank you.

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