“Fiscal Cliff” Will Hit Most Taxpayers in the United States
The package of tax increases and spending cuts known as the “fiscal cliff” takes effect in January unless Congress passes a budget deal by then. The economy would be hit so hard that it would likely sink into recession in the first half of 2013, economists say.
And no matter who you are, it will be all but impossible to avoid the pain.
Middle income families would have to pay an average of about $2,000 more next year, the nonpartisan Tax Policy Center has calculated.
Up to 3.4 million jobs would be lost, the Congressional Budget Office estimates. The unemployment rate would