The United States is a few days away from going over the so-called “Fiscal Cliff,” and if the impasse continues after the New Year, it could have a major impact on the economy.
The federal government would take more in taxes from our paychecks than it is now. For most families in Fresno County, it could be the difference of a couple hundred dollars each month.
“I think the average person feels like they can't do anything about it. And that includes me sometimes,” said Diana Marinez, a Fresno resident.
Marinez admits she doesn't know all the details involved, but she isn't happy her paycheck would be smaller if we go over the cliff. The average Fresno County household making
$40,000 would take home about $200 fewer dollars each month.
“That's a lot of money. That could be car payments or food on the table,” said Marinez.
Economist Henry Nishimoto fears the worst: tax hikes, which have a ripple effect, plus spending cuts. It's enough to reverse any recent economic progress.
“This is like a perfect storm. We've never seen this come together like this before,” said Nishimoto.
CBS47's political analyst hopes it doesn't come to that. He feels pressure on the Republican Party may force it to give in.
“The polls indicate most people are blaming republicans for the problems we have and not being able to resolve this right now,” said Don Larson.
Congressman Devin Nunes released this statement today:
“Raising taxes is the last thing you want to do in a weak economy. The House has already passed a bill to stop the looming tax hikes, and President Obama should join us in promoting economic growth by ensuring that no one gets hit with a higher tax bill.”
Meetings are planned in the coming days to hopefully resolve the controversy.