The Fiscal Cliff: Questions and Answers

The Fiscal Cliff: Questions and Answers

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BIRMINGHAM, AL (WBRC) -

What does the fiscal cliff mean to you? It means you could directly feel the impact in your wallet.

There are tax credits for individuals and businesses that are set to expire. There are end of the year spending cuts that affect government programs like medicare and unemployment benefits. Here's the toughest part about all of this, it may happen at about the same time.

This could mean higher taxes for just about every income group...

According to the Tax Policy Center, low income taxpayers would see an increase of about $412. Middle income taxpayers would see almost a $2,000 increase. Taxpayers in the top 1% would see the highest increase of $120,000.

There is still hope that if lawmakers make some really tough decisions, the country can avoid this worst case scenario that could potentially throw the country into recession.

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