Now that the election is over, it's time for Washington to focus on some important issues before the year is over.
The Fiscal Cliff is a series of spending cuts and tax increases scheduled to go into effect January 1st.
That's because the tax cuts George W. Bush put into effect stop at the end of this year.
Congress and the President must decide by New Years Eve whether to keep the tax cuts in force.
"We are all going to see a reduction in our take-home pays so the paycheck we take home every two weeks or every month. The number is going to be going down simply because the tax rates are going up," says financial planner, Dr. Indu Chhachhi
Right now, 4.2% of your paycheck is going to federal taxes.
By January 1st, your payroll taxes could go back up to 6.2%.