The Fiscal Cliff: How Will It Impact Families?

By: WOWT, The Associated Press contributed to this report Email
By: WOWT, The Associated Press contributed to this report Email

To run the numbers to see what you would pay under the different Fiscal Cliff scenarios, click link below from the Tax Foundation:

interactive.taxfoundation.org/taxcalc/#calculator

It could be quite a weekend, President Obama meets with lawmakers Friday concerning the fiscal cliff. The House of Representatives returns Sunday night for a highly unusual session. If a deal isn't reached, the average family will certainly be taking a hit in the pocketbook come January.

The most immediate impact would be on our paychecks.
More money would be withheld for social security. According to the experts for example, if you're making $50,000 -- expect to pay an addition $84/month. If you're making $100,000 - $168.

With no deal -- there would also be across-the-board tax increases, estimated by the Tax Policy Center -- to be around $2,000 for middle-income households.

But at the same time -- the government would to make deep spending cuts to the tune of $1.2-trillion. Those two things together are the Fiscal Cliff.

While there is no guarantee of a compromise, Republicans and Democrats said privately elements of any agreement would likely include an extension of middle class tax cuts with increased rates at upper incomes as well as cancellation of the scheduled spending cuts.


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