(Memphis) With a fiscal cliff agreement reached in Washington, get ready to have more money taken out of your paycheck. You will have to pay more taxes.
We’ve been getting a break these last two years with a payroll tax exemption but with the deal Congress reached last night that exemption goes away and you’ll see it in your paycheck in about two weeks.
You don’t have to go into deep water to get a good oyster in Memphis; they’re served up every day at Pearl’s Oyster House on South Main. However, there’s nothing the employees here or anywhere else can do to avoid the effects of the fiscal cliff agreement reached yesterday.
“We were just calculating today what the average employee, our hourly employee, is going to have to pay in and it ranges anywhere from $9 a week to I think we saw $20-$22 a week,” said KC Lambert, General Manager, Pearl’s Oyster House.
Almost all of us will take home less pay because of this agreement. If you’re making $30,000 a year, you’ll lose about $50 a month. If you earn $50,000 a year, it’ll cost you about $83 a month. Those making around $114,000 a year will see their monthly checks shrink by almost $200 a month.
When server, Dion White, adds up the numbers, he could stand to lose around $600 a year.
“That's like a month’s rent or a month’s bill; you won't be able to pay. So, that does hurt a lot,” said White.
The general manager is one of the highest earners at Pearl’s Oyster House; he’ll likely have to pay the most in taxes. He says he wouldn’t mind paying more if he thought it would make a positive change in the way the country is run.
Lambert said, “When you look at all the abuse in government today and the amount of money that gets wasted and the amount of programs that get duplicated, it's very frustrating to pay anything more.”
The management at Pearl’s is considering opening another restaurant in Downtown Nashville but with all the changes and uncertainties in tax codes and government, they’re not so sure now is the right time.