President Obama met with congressional leaders at the White House for an hour long meeting over budget talks to avoid taking the country over the fiscal cliff. Financial experts are on edge on what this means you and me. Brian Ullmann is a financial planner with Ford Financial Group, in Fresno. He says if no deal is made, there will be widespread ramifications.
“Someone who earns between $50,000 to $75,000 a year could be paying probably about $2,500 more in taxes per year,” said Ullmann.
And of course, if you make more you'll have to dish out more cash. But that's just the beginning. Ullmann added, “We could also be seeing more layoffs. Part of this fiscal cliff is cuts in government spending. So we could see immediate layoffs in government jobs. And then as a side to that, private companies contracting with the government could see stops in those contracts.”
And Ullmann says saying "I do" at the alter means you may also soon have to say "I do" to paying higher taxes than your single counterparts.
“Married couples have had an exemption for them and that's going to get cut in part so there's not much of a benefit of being married tax wise as there has been in the past,” explained Ullmann.
And if you own a home, you may no longer be able to deduct the interest paid on your mortgages.
“It's a drag on the economy. We'll be spending less and paying more in taxes and it's going to create a 3 ½% drag on the economy. When the economy is only growing and 1 ½% to 2%, you don't have to take out a calculator to realize that's going to cause a recession,” said Ullmann.
He said even if an agreement is made, things are not going to be the same. He said we will still likely see some cuts. Where the cuts come from though, is yet to be determined.