MEDFORD, Ore. – The impacts of the deficit talks will have an immediate effect on people’s paychecks. No matter what plan leaders in Washington come up with, there will still be changes to people’s paychecks. How much of a change is still unknown.
Financial planners say there is no magic fix to this situation, under any plan, whether there is a resolution or not, taxes will go up and some programs will receive cuts, the only question is by how much. According to data by the Tax Policy Center, a single person making $20,000 per year would see taxes increase by more than $300 per year. A married couple with no children who makes about $55,000 per year would see their taxes another thousand dollars.
Financial planners say proposed plans would include tax increases and cuts in certain spending. Officials at the Rogue Valley Council of Governments worry it could affect Medicaid, and cut funding for things like in-home care and meals on wheels. The RVCOG says about $70 million in Medicaid comes in to Jackson and Josephine Counties, which helps pays for employees at assisted living centers, in-home care, and other programs.
As for people’s paychecks, if there is no agreement on a plan, financial experts in the Rogue Valley say people will start seeing the impact immediately in 2013. They say on the lower end of things, people may see their pay decrease by close to $160 per month.