Washington drama affects your wallet

TERRE HAUTE, Ind. (WTHI) - As the year ends, a gridlock continues in Washington. Fiscal cliff negotiations between Democrats and Republicans hit a wall again. Without a solution, the fiasco will hit Hoosiers in the wallet.
 
It's a war of words on your television screen: Democrats versus Republicans, as both parties attempt to steer clear of the fiscal cliff with their own plan. The latest set back could send the country veering over the edge.

But these press conferences and speeches all leave out one major part of this story: you.    
    
So, News 10 sat down with Jordan Moran of Stadler Tax in Terre Haute. He told us this cliff hanger of a story, leaves tax payers like you in the loss column, starting with your paycheck.
    
Right now you pay 4.2 percent of your weekly ticket stub to social security. But 2013 could be a different story.

"If that doesn't get extended after this year, each employee will see a two percent reduction in that pay,” Moran said.
    
To put that it into perspective, if you earn 20,000 dollars that 2 percent increase means you would lose up $400-per-year to taxes.
    
It doesn't stop there.

Tax rates for working Americans stand to go up as well; starting with folks in the 10 percent tax bracket.

"Each client will start out at 15 percent. So, right there, every client that files a tax return and has taxable income sees a 5 percent increase in their tax,” he explained.
    
Jordan says if an agreement is reached it, Hoosiers may be able to avoid some of these increases, but:

"We just don't anticipate that with the way everyone in congress is arguing and everyone has their own agenda. So we really don't think any of this going to get extended again," he said.
    
It’s a decision in Washington that could change the weight of wallet from miles away.