Posted: Jan 8, 2013 4:32 PM by Judy Slate
Updated: Jan 9, 2013 11:09 AM
BOZEMAN - Your next paycheck will likely be smaller. Thanks to the fiscal cliff compromise, the "payroll tax holiday" was not renewed. For the past two years the amount of money witheld to pay for social security and medicare was 4.2%, that number now goes back to 6.2%.
A person who makes beween $20,000-$30,000 a year will pay an average of $300 more in taxes per year, someone who earns $50,000 per year will pay an additional $1,000 per year and a person who earns $500,000 will see their paycheck shrink by $14,812 a year.
With less money in their pockets, consumers pften spend less which usually affects small busnisesse like the Country Book Shelf in downtown Bozeman.
"People are going to be watching their pennies and we cannot compete with the big box store offers or the online offers" said Country Book Shelf owner Adriana Paliobagis.