How Fiscal Cliff Impacts You

Biana Golodryga reveals how the new taxes hit home for average taxpayers.
2:03 | 01/01/13

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Transcript for How Fiscal Cliff Impacts You
As you point out, wall street does open tomorrow morning. After a week straight of losses already, nervous investors le leading up to the fiscal cliff, the average 401 k losing $3,000 in this country. Abc's bianna golodryga was the story of just one family and the huge tax increase, if congress doesn't figure this out. Reporter: Until there's an agreement, this what the martins from raytown, missouri, like so many middle class american families, face. A hefty spike in taxes. Beau, a government contractor, and deanna, an office worker, make a combined income of about $60,000. Without a deal, their income taxes will rise by roughly $2,400 a year. On top of that, like everyone else earning $110,000 or less, they'll pay higher payroll taxes to pay for social security. With or without a deal, those are set to go up across the board by 2%. And for the martins,hat means they'll pay an additional $1,200 a year. Income and payroll tax increases combined, the martins are looking at an additional $3,600 in 2013. And it doesn't stop there. Without a deal, feeding their 2-month-old baby daughter, grace, could cost the martins a lot more, too. Every american faces the potential for a huge jump in milk prices. The farm bill has stalled, and subsidies have been rolled back. Without a deal securing that help for farmers, the price of a gallon of milk could shoot up to almost $7 a gallon. Familig payinthe price at the grocery store. Very alarming numbers here. Bianna is here. What do you suppose is going to happen tomorrow? What are your people telling you? Reporter: Everyone is curious to see what happens overnight. One of two things could happen. If congress does attach spending cuts, that bill is blown up and you can see markets really sell off tomorrow. If this is just punted along, markets could be a little bit more patient but patience is running out. AND 401(k)s ARE BEING AFFECTED, As well. Bianna, thank you. We're going to turn now to secretary of state hillary

This transcript has been automatically generated and may not be 100% accurate.

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