CHARLOTTE, N.C. - The name alone – fiscal cliff – is frightening. The implications are very real and taxpayers’ income could drop.
There are $800 billion in tax cuts and spending on the line, unless current tax cuts set to expire are saved.
Eyewitness News broke down the numbers according to the Tax Policy Center.
Taxes could rise by $536 billion in 2013. The average family will pay an extra $3,500.
A family living at the poverty line, would lose $1,200 per year.
A family making $40,000 to $50,000 is losing $1,700. Double that for incomes in the $75,000 to $100,000 range.
Those making more than $100,000 lose more than $6,000 per year.
If the Democrats and Republicans will put their heads together they can come up with something.
Channel 9 asked newly-elected Rep. Robert Pittenger if they can come up with something.
“I hope reasonable minds prevail. And we will have policy that won’t put an extra tax burden on the economy,” Pittenger said.
However, a divided Washington the past two years lead to gridlock on other issues like the debt ceiling.
Some say Americans won't put up with much more.
“If we continue like the past two years, I think the American people will go into an uproar if they are not willing to work together,” said political expert Dr. Michael Bitzer.
The reduction in people's income means they will spend less and the government is also supposed to cut spending as part of the fiscal cliff.
All of that combined is why experts worry this could send America back into a recession.
Lawmakers can pick and choose what they want to keep and let expire.
Tax Increase by Income:
|Below $10,000||$ 297|