(Las Vegas, NV) — As President Barack Obama puts pressure on congressional Republicans to compromise to avoid the fiscal cliff, a failure to reach a deal means tax increases and deep spending cuts take effect in just over a month.
Carole Vilardo is the head of the Nevada Taxpayers Association and told KXNT there is confusion among Nevadans.
“If they (Capitol Hill) don’t do anything there are some surprising impacts that are going to hit people that I don’t believe they are aware of.”
The Child Tax Credit will drop from $1,000 to $500. Also, the theshold to be able to deduct medical expenses will increase from 7.5 percent to ten percent.
And your paycheck will look a bit lower as well according to Vilardo. “People are paying two percent less on FICA then they otherwise would. That deduction ends on December 31st. Nevadans will find two percent more taken out of their paychecks.”
The fiscal cliff resulted from a failure to reach a deficit reduction agreement in the past two years due to differences between Democrats and Republicans on taxes.