A 'fiscal cliff' calendar if Washington doesn't reach budget deal
Updated On: Dec 27 2012 11:36:33 PM EST
Even if leaders in Washington don't reach a "fiscal cliff" budget deal, the economy won't take an immediate nose dive.
Taxpayers, however, could be in for some real pain in the coming months.
Here's the Local 6 Unofficial Fiscal Cliff Date Book:
- Jan 1: Tax hike for all working American.
- Jan 2: Stock market re-opens, Dow likely plunges.
- Jan 14/15: First bi-weekly paychecks of the year are issued. Pay is at least two percent less because the payroll tax cut expired, a $1500 hit to the average earner per year. Checks shrink even more (between $92 and $142 less per worker per paycheck) because the Bush-era tax cuts expire as well.
- Jan-Feb: Billions in cuts to federal spending result in layoffs at federal agencies. TSA workers, for example, may get furloughed. Defense spending at the Pentagon takes a huge hit. The stock market continues to struggle.
- Early Feb: If there's no deal, the U.S. is looking at a crisis, as the economy grinds to a crawl.
- March: The U.S. could default on its debt obligation unless the debt ceiling is raised. A default would lead to a downgrade of U.S. debt, a nightmare for world markets and a possible global financial panic. The economy look something like the 2008 recession, or worse.
Copyright 2012 by ClickOrlando.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.