Businesses prepare for consumers to cut costs

FORT WAYNE, Ind. (WANE) - The first paychecks of 2013 have been delivered and recipients quickly witnessed the effect a deal made in Washington has at home.

Workers across America will have less in the bank beginning immediately as a result of the Social Security and Medicare tax increase.

Many consumers walking around downtown Fort Wayne Monday afternoon revealed plans to trim budgets to handle the $20-70 less income each month.

Local entrepreneur Alana DeLong was hopeful her business, Downtown Grind would not suffer because others are saving.  She encouraged consumers to keep what money is spent in local hands.

“When you spend money local, it stays in the community four and five times over.  So, if you’re going to splurge, maybe think of a local business,” DeLong said.

The general manager for Dash-In, a downtown eatery agreed with the importance of that support.  Sheila Underwood said current cost cutting is coming at a time that is already hard on businesses.

“January is always a tough month,” Underwood said. “It’s cold; people don’t want to go out to begin with and they’re trying to get back over Christmas as well.”