Personally wouldn't recommend Paxil while pregnant. It's a difficult drug to take and to quit; wouldn't want to be born adapted to it.
Hi I'm sorry to hear you are having a rough time. My girlfriend never had anxiety till her 2nd pregnacy. She started to have panic attacks and anxiety so bad she couldn't even take a shower without the curtain open and her husband sitting on the edge of the toilet with her. It was horrible. She said she paced the floor and couldn't relax. She finally had a horrible panick attack (she didn't know that is what it was at the time) and wound up in the ER. Her ob meet her there and but her on paxil. Told her she had to do it and the risk was minimal for the baby. She took it and said within a few days it kicked in and she sleep for the first time in a while. She has been taking it ever since. The baby is now 4 1/2 years old. She tried to come off a few times but felt the anxiety come back. She started it about 5 months pregnant and nursed on it and everything was fine. Don't know if that helps but sometimes you have to take something when you just can't get a handle on things.
You should speak with your doctor about other ways of coping with your anxiety (therapy, exercise, breathing techniques, etc). If the anxiety is really out of control, you should talk to your doctor about which would be more harmful to your pregnancy: the xanax or the anxiety. Xanax can cause birth defects if used in the early stages of pregnancy, and withdrawal symptoms in a newborn if used in the later stages. However, your doctor will weight the risks based on your individual situation. There are also less harmful drugs that you can use (such as antidepressants) during pregnancy to help with anxiety.