Breaking Down The Fiscal Cliff Impact For Families

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by Audrina Bigos
Bio | Email | Follow: @AudrinaBigos

Story Created: Dec 4, 2012 at 11:37 PM EDT

Story Updated: Dec 5, 2012 at 7:37 PM EDT

CHARLOTTE, NC-If there's no deal in Washingtown in the next four weeks, steep spending cuts kick in and a number of tax credits go away.

For families across our area, falling off the fiscal cliff would mean major pains.

"The cliff I mean, just the way they say it makes you feel like you're just going to fall over. It's a worrisome thing," said Myla Oaks, a Kings Mountain Resident.

Oaks is holding down her home and her store. With a husband out of work and business slow, the fiscal cliff is daunting.

"Will we be able to make the overhead? Will we be able to pay our bills at home. My business supports itself and our family," said Oaks.

"Right now, it's a political game of chicken. Whoever flinches first is probably going to lose, but it's a serious game with your money," said Bill Woolard, president of Third Day Capital.

As the deadline approaches,  Woolard says the stakes are high for the average family.

"Increased cost for airline fares, you could have higher food cost, a reduction in food stamps," said Woolard.

If Congress fails to compromise, the average family could pay about 2,000 dollars more in taxes. And that's not all.

"If you need to borrow money for a car or home or rates associated with your credit cards... all those costs would go up,” sais Woolard.

It wouldn't just affect your wallet. Going over the cliff could mean cutting services you use everyday -like cutting Saturday mail deliveries and even shutting post offices.

The Oaks say all they can do is wait and hope lawmakers to reach a deal in time.

"Are we going to lose everything we've worked hard for? It's a possibility," said Oaks.

The 2,000 dollars in added taxes could buy three months of groceries, ay a year and a half of electric bills or four semesters of college textbooks.

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