Fiscal Cliff Could Mean Tax Increase

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by Kirk Hawkins
Bio | Email | Follow: @kirkhawkins

Story Created: Nov 10, 2012 at 12:09 AM EDT

Story Updated: Nov 10, 2012 at 1:25 AM EDT

CHARLOTTE, N.C.--The average household could owe the government 35 hundred dollars more
each year. It all depends on if Congress can avoid the automatic spending cuts and tax hikes expected to take effect in January as part of the looming fiscal cliff.

Alan Medlin is singing the blues when it comes to the possibility of paying more taxes. "I'm not happy about it and quite honestly I don't know how I'm going  to make it much longer," said the Albemarle resident. The state worker says he would be forced to cut back on Christmas presents, gas and as a result, take more out of his pocket. "Come on man, at some point it's gotta stop...where's the limit...I don't know," said Medlin.

Larry Carroll said the fiscal cliff could slow down the growth of the economy. But, the financial planner said it isn't the end of the world.  Congress still has plenty of time to act. "It just kinda sounds ominous...we'll get through it. We always do," said Carroll.

Five years ago, LaTonya Shepherd and her husband lost their jobs, and their home and spent six months on the streets. "We're now able to see the light that's at the end of the tunnel,"

Now, she's living in a new home and working at a new job. She said higher taxes would be devastating. "It's a matter of putting food on our table, putting gas to get to work or spending the money to get our medications that we need," said Shepherd.

Financial planners say investors can seek out bargains as a result of the volatility in the market created by the fiscall cliff.

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