If Congress can't reach a deal to extend payroll tax cuts this month, almost every American will be affected.

No deal means higher taxes and less in refunds, and low-income families in particular could be hit the hardest if Congress can't work together.

An owner of a tax service company in the Valley says paying for things like gas and food will get tougher, especially for low-income families who might have to spend hundreds of dollars more in taxes.

Richard Taveras, the owner of Latino Tax LLC in Harrisonburg, says many of his customers are the ones who will have it the worst if a deal isn't reached in Congress.

If the payroll tax cut expires on December 31st, the current rate of 4.2 percent will go up to around 6 percent.

It might not seem like a big jump but Taveras says the small things can add up.

"You're losing two-percent. If a person is making $10.70 an hour that means it's going to be $35 a month," he explained. "That could be your water bill. If somebody has a phone, they pay $30 a month. You're losing that money to pay the tax bill."

Political experts say a tax cut deal is likely, but it all depends on compromise between Republicans and Democrats.

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