EYEWITNESS LOCAL NEWSFISCAL CLIFF IMPACT
from Eyewitness News Online
What Going Over The Cliff Means For Your Wallet
Reported by: Katy Brown
Videographer: Jeremy Bias
Web Producer: Katy Brown
Also Contributing: ABC News
Reported: Dec. 30, 2012 4:30 PM EST
Updated: Dec. 30, 2012 4:40 PM EST
Charleston , Kanawha County , West Virginia
An agreement on how to fix the national debt has yet to be reached in Washington, D.C.
It has turned into a battle between the democrats and republicans. And what they do or don't do will have a huge impact on people here in West Virginia and across the nation.
"Beginning January 1 of 2013, their social security taxes, their medicare taxes, and several other taxes will go up," said Harry Frashier II of US Tax and Finical Group in South Charleston, "Their tax credits will decrease to the 2001 level. A lot of the things people look forward to, the earned income tax credit, will probably drop down to about a third of what it is now."
If no agreement is reached, that increase in taxes could affect 9 out of 10 households and increase each of their taxes by an average of $3,000 a year.
In order to avoid the increase, both democrats and republicans have to come up with a plan to keep tax breaks and unemployment benefits in place, in addition to driving down the national debt.
And with time winding down, it doesn't look like it's going to happen.
"It is the President's responsibility to lay out a plan and to bring people together," said Sen. Bob Corker, R-Tennessee.
Majority leader Sen. Harry Reid said "John Boehner seems to care more about his speakership than about keeping the nation on firm finical footing."
"The only reason democrats have been trying to deflect attention on to me and my colleagues over the past few weeks is because they don't have a plan of their own," said Sen. Mitch McConnell, R-Kentucky.
But the frustration is felt far beyond Washington. Americans are outraged.
"I just think that it's getting out of hand and everybody's saying 'Well we'll wait till tomorrow.,'" said Frashier, They're not taking responsibility because the left hand doesn't usually know what the right hand is doing as far as the government is concerned."
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