SPRINGFIELD, Mass. (WWLP) - The payroll tax hike that took effect as a result of the fiscal cliff is taking a toll on many Americans' household budgets.
That change in federal tax law means people are taking home smaller paychecks, and that's forcing nearly 75% of Americans to cut back on spending, according to the National Retail Federation .
Less money in your pocket, plus higher gas prices and unsteady consumer confidence mean bad news for the economy.
One Springfield woman told 22News that she has definitely noticed a change for the worse in her paycheck, and now she has to cut back on some of the fun 'extras' she used to enjoy
"It actually affects me a lot more, because now I have to spend a little less than before. I have less money in my check," Damaris Santiago of Springfield said. "I used to go out to eat or see friends at a club or have a drink. I don't do that anymore."
The NRF says that half of the people who were really impacted are now delaying major purchases of items like cars, TVs, and furniture-- and it's what major retailers like Walmart are blaming for low sales in February.