Fallout from the Fiscal Cliff, As Seen by "Investment News"

8:57 PM, Dec 30, 2012   |    comments
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WASHINGTON (WUSA) -- Experts say count on your paycheck likely getting smaller, due to the fallout from the fiscal cliff.

"Watch, wait, pay attention and get out that checkbook because you might have to pay more this year," says Mary Beth Franklin, contributing editor for Investment News.

The metro area would be greatly affected, with $109 billion across-the-board cuts. Half of that comes from national defense programs. 

Franklin explains: "For the Washington area - federal workers, they'll go to work January 2 but they don't know if they'll go home after that because if the budget cut the sequestration kicks in, there might not be enough money to run their agencies." 

Current funding for the federal government could run out before March, leading to a shutdown. The alternative minimum tax could affect this year's tax returns on average $1,000 - $2,000 because exemptions and other privileges would expire

Benefits for the unemployed are also on the line, with Congress looking at an extension for two million Americans.

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