UPDATE: LANSING - It's a challenge to run your own business here in Michigan.

"Our country in the last 5 years, it hasn't been easy to make it in this economy at all," said Michael Doherty, Owner of Defye clothing store.

The fiscal cliff deal may have made things harder for small businesses here in Michigan.

The payroll tax cut used for social security is back in effect and is taking 6.2 percent instead of 4.2 percent.

This will affect a lot of business owner decisions on whether they feel comfortable on expanding, or buying more equipment, or hiring more workers," said Alex Rosaen, director of Public Policy and Economics at Anderson Economic Group.

Certain businesses will feel the tax hike more than others.

"Retailers and those who sell durable goods like cars, those are the ones that are affected first when there's some sort of tax to their income like a tax hike," said Rosaen.

Workers making 15 thousand dollars a year will see 50 dollars less each month.

Workers earning 50 thousand dollars will tack on a extra 83 dollars each month.

And those making 100 thousand dollars will feel a 200 dollar crunch.

"The lower you go on the income scale the more likely they are to have to reduce their spending due to this payroll tax increase," said Rosaen.

"At the root of it, do whatever it takes to find your own way, sometimes you have to Defye the world around you," said Doherty.


ORIGINAL STORY: LANSING - Find out how the fiscal cliff deal is affecting small businesses here in Mid-Michigan by watching Meridian Magazine.