Dec 28, 2012 8:57 PM by Connie Tran, KSBY News

Potential effects of falling off the Fiscal Cliff

The Fiscal Cliff looms in the nation's future. Congress and the White House have until Tuesday to decide whether to extend tax cuts implemented ten years ago by former President George W. Bush, or let a series of automatic tax hikes and budget cuts take place.

According to Pismo Beach Certified Financial Planner Joe Brittingham, those with an income of several thousand dollars, and those with investments and properties are likely to feel the fall of the Fiscal Cliff the hardest. But, essentially, he said the Fiscal Cliff, if goes unresolved, will affect all working Americans.

So what does that mean for you? According to Tax Policy Center, if you make between $20,000-$30,000 a year, you'll see an average tax increase of $1,064. If you bring in $40,000-$50,000, the average tax increase will be $1,729. And, if you make a million dollars or more, expect an average tax hike of $254,637.

"I don't feel that it's really a partisan issue, this is a federal deficit issue. And, you have republicans and democrats who just can't seem to agree on terms, but ultimately it's going to be the economy that feels the impact from it," said Brittingham.

If the country falls off the Fiscal Cliff, it would reduce the deficit by over $500-billion dollars. The nation's current debt is $16-trillion.

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