TOWSON, Md - Falling off a cliff is, well very bad...let alone painful.
Talk of the going over a fiscal cliff for the federal government won't be painful for the people who did the pushing.
But for the folks who have to do the catching, namely you.
“I think's it more of a fiscal slope rather than a cliff gives it more of a dramatic impact.”
Towson University Economist Darius Irani says by October more than a thousand government programs would lose funds, from defense to highways, from the courts to the airport security.
Irani says many fear that deep cuts to government spending now could deepen the recession let alone increase your wait at the airport.
It would also take money out of your pocket, eventually.
“There was the payroll tax reduction that Obama passed last year which reduced payroll tax from 6.2% to 4.2% that slated to go automatically up. Then there's the tax rates the Bush era tax rates slated to expire most households won't feel that until April 2014 when they file their tax forms but those individuals business that file on a quarterly basis could feel that as early as March.” Irani says.
That translates for a wage earner who makes roughly 50 thousand dollars a year will pay $2000 more in payroll taxes.
They will also lose hundreds of dollars from their tax refund
Maryland could be one of the hardest hit states.
Fifty five to 100 thousand people could be laid off by federal contractors.
And the tax rate for Most Marylanders would increase to about six point four percent.
“I don't know what's going to happen it's hard to predict but I got a feeling that were going all the way down to about three or four days before Christmas.”
Speaking at Coppin State University today, Congressman Elijah Cummings says congress has a lot of work to do and they're still squabbling over what should happen.
He says his big concern is that by falling over this cliff, or sliding down this slope Maryland which went through the recession better than most other states could be one of the bigger losers.
"We are a state that gets a net 17 billion dollars a year mainly defense contracts and that’s major for us." Cummings says.
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