The results are finally coming out on the newest tax deal, the so-called fiscal cliff aversion, and although the promises were that only the richest Americans would see a rate hike, the true effect is actually showing much different.

Because the tax deal allowed the Payroll Tax Holiday to lapse, the average American is seeing a 2% decrease in his/her take-home pay. Most of the richest Americans, who will only be subject to taxation on higher earnings, have yet to pass the tax rate increases. So, as we approach the first pay day of the new year, working Americans will see less in their accounts.

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From a planning perspective, the tax that is affecting most Americans is supposedly going to fund Social Security and Medicare (although this “trust fund” is really just IOUs from the government), so true income taxes have only been raised on the “rich”. However, if you  hear someone from the government saying that they want to help, and you believe them, I have ocean front property in Arizona I would like to sell you.