(Memphis) If Washington doesn't reach a deal before we hit the fiscal cliff, the average American family will see a tax increase of over $2,000, and the government will also be forced to cut services, including the military.
Dr. David Kemme is an economist and says he expects a deal between congress and the president by the deadline which is the beginning of the New Year, “I don`t think we should worry too much because I honestly believe they will reach a deal. And if they don`t I`m not so sure."
He says if they don`t reach a deal automatic tax increases will go into effect as well as spending cuts to most government programs including education and welfare and put the US back into a recession.
Kemme says we got to this point because politicians put off dealing with the sixteen trillion-dollar national debt and the expiration of the Bush tax cuts.
“No one was willing to raise taxes or discuss cuts, especially to entitlements and discretionary spending until after the election was over,” said Kemme.
Now the election is over, and President Obama is pushing for a tax increase for families making over $250,000.
Republicans want spending cuts to programs like Medicare and social security to make up the difference.
Kemme says he expects a mix of tax increases and spending cuts to avoid going over the fiscal cliff even though negotiations may go up to the final hours.