Markets have responded positively on news that Congress reached a deal on the fiscal cliff.
The bill now sits on the President's desk. He's expected to sign it . The bill extends the Bush tax cuts to all except those making more than $400,000 a year.
However, the payroll tax cut was not extended, which effectively means about 2% of a paycheck now will be taken out for social security.
Certified Public Accountant Sam Lovelady sa id although it's not a huge amount, "people are going to see those paychecks shrink a little with the New Year."
For example, those making $50,000 a year could see a thousand less on their paychecks over the year. Also, despite the euphoria surrounding the markets, there are further fiscal arguments ahead in Congress.
Doug White of American National Bank sa id, "In the last couple of days there's a certain degree of excitement that they've reached some sort of a settlement. I'm not sure that it's a long term solution to the problem. March 1st we still have to face a fiscal deficit problem and that's staring us right in the face."