Small Biz Owners Seeing Consumer Confidence
KREX News Room
GRAND JUNCTION, Colo. The last minute fiscal deal provided many consumers a sigh of relief. While Americans will still experience tax increases, small businesses owners are seeing more consumer confidence post fiscal deal.
While we didn't fall off the cliff, Congress's drawn out debate on the matter impacted America's small businesses.
Paul Knaysi, owner of Pablo's Pizza, said, "They must live in an alternate universe because they don't feel the consequences like we do."
Owner of Colorado Baby, Megan Reinertsen, said, "Through the month of December it felt like people weren't willing to spend money."
"It did affect I think our December, I talked to other retailers and they had a similar experience. We still grew, but it wasn't as much as we'd expected," Knaysi said.
Despite being off schedule, their fiscal deal may have been enough to get folks out and spending.
Reinerstsen said, "Last week I was really shocked at how well the week had gone. My immediate thought was, maybe the fiscal cliff really was keeping people back."
However, middle-class American's will also see a slight decrease in their paychecks.
Gina Tallman, CPA Senior Accountant at Chadwick, Steinkirchner, Davis & Co., P.C., said, "They did not extend the payroll tax holiday, which has been in affect for the last two years. Everybody who makes less than $113,000 a year will see that two percent decrease."
"That's money you can put towards gas or groceries. It will definitely affect some people to a degree, definitely, any money that's cut," Reinertsen said.
Tallman said, "It's not a huge amount, but it will affect people."
However, this extra money in our paychecks was never meant to be permanent.
"It was part of the stimulus package passed by Obama. It was meant to give everybody a little bit of a boost in their take-home pay and sort of stimulate the economy," Tallman said.
Despite a crunch in middle-class paychecks, business owners are hopeful that mitigated cliff concerns will be enough to boost consumer confidence.