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Taxpayers Unsure About the "Fiscal Cliff"

36 views · Published 28 November 2012 · 1:52 · Indexed 17 October 2026

Channel: WTVC NewsChannel 9 · 2012 · News & Politics

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by John Pless  There's just five weeks before the nation hits the so-called "fiscal cliff" that experts say could send the country into another recession. Negotiators from Capitol Hill and the White House met over the Thanksgiving break without making much progress. If there is no deal, 50 billion in spending cuts and tax increases will automatically go into effect on January 1, 2013. And for now, there are no face to face meetings scheduled between President Obama and congressional leaders. Instead, president Obama is meeting this week with middle class families and small business owners to make his case to for a balanced approach for dealing with deficit.These negotiations are uncomfortable for many Republicans, who have taken a hard line on raising taxes for nearly a generation. Many of them have signed a pledge. But some are now saying that's not as important as getting the fiscal house in order.Tennessee GOP Senators Bob Corker and Lamar Alexander are now saying they don't have to abide by that "No Tax Pledge" they signed. Representative Chuck Fleischmann's office will only say he's committed to cuts before thinking about raising taxes. We asked voters, if they really understand what's at stake. Most said, "No," they really don't understand the ramifications.That fiscal cliff refers to what happens in 2013 when automatic spending cuts kick in as tax breaks expire. It could mean Americans paying hundreds, even thousands more in taxes for a scaled down military and less generous social programs.Andre Collier said, "I don't think we should pay more taxes. I don't really think that will help things out, just making it worse."Debbie Frick said, "It means I probably won't be able to retire as early as I want to."So what about Republicans backing off that No Tax Pledge, putting tax hikes on the wealthy on the negotiating table?Colleen Taylor said, "I think they are beginning to face reality, they're bitter because they lost."Frick said, "Partly I wonder if it was a pledge just to get elected and that concerns me."People we spoke with don't mind cutting back on war and the military. They don't want to cut benefits they've already paid for like Medicare, Social Security and education.Louis Hughley said he hopes they can work it out."I do, I pray about it everyday," he said. "So it's really all based on the man upstairs."The White House has been saying that if no agreement is reached, and the nation goes over the fiscal cliff, it could mean a tax hike by as much as ,200 for each middle class family.

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