Local businesses concerned over payroll tax increase

CHICOPEE, Mass. (WWLP) - This week, Congress was able to finally come together and pass a bill that includes protecting 99% of Americans from an income tax hike. However, the bill does not stop social security payroll taxes from rising 2%--which means--most working-class Americans will be paying higher federal taxes in 2013 as a result.

"It's unfair. I mean, we have to have taxes to make ends meet--everybody realizes that--but there has got to be something that can be done to give the "average Joe" a better stand on how they can survive today", said Bruce Cierpial of Chicopee.

Here's how you may be affected:

• If you earn $30,000 a year, you'll see an extra $50 taken out of your pay per month.
• If you earn $50,000 a year, you'll lose about $20 a week from your paycheck.

What most Americans don't realize is, the 2% extra--that's going to be taken out of our paychecks--was really a short-term credit over the past two years. Even so, this change is expected to have some serious economic repercussions.

"I think it's going to be a hard hit because during that period of time. Prices went up, food went up, a lot of different things went up; and suddenly if you're making $50,000 a year, a thousand dollars is serious money", Springfield Tax Attorney Paul Mancinone told 22News.

Experts are already projecting that many Americans are going to start to cutback on how much they spend--something that local businesses say they can no longer afford.

Glenn Chamberland is the owner of The Copperline Eatery in Chicopee. He said he has been struggling over the past year, and can't picture it getting any worse than it already is. "It has really been depressed here in western Mass. I've been in business for 20 years and this is my worst year that I've ever had so far. We're just being very careful on how we're spending money, and trying to conserve every dollar, every penny, anywhere we possibly can", said Chamberland. That's exactly what many Americans will also be doing also in the wake of this tax increase.