LITTLE ROCK, Ark. (KTHV) - The impending "fiscal cliff" could mean a tax hike for Americans.
The fiscal cliff refers to the $600 billion of tax increases and spending cuts that will come into play in 2013 if Congress doesn't break a partisan block.
Some of the tax cuts went into play during the Bush era, like the child credits. Others are from President Obama's payroll credit, intended to stimulate the economy. Many analysts and economists say some big problems could stem from this upcoming decision and doing nothing could send us back into a recession.
We spoke with an economy and finance professor at UALR, who says how much your taxes will increase all, depends on how much you make. "For a family of four here in Arkansas, earning 40 thousand dollars with two kids, another economist and I worked it out and we estimate that taxes would go from 2,350 now to 5,000 dollars for that family," says Dr. Andy Terry.
Overall about 88 percent of households would end up paying higher taxes, that's according to the tax policy center.