One step away from the fiscal cliff

New taxes will take effect tomorrow

One step away from the fiscal cliffThe middle class will be the most affected by the new tax guidelines. Photo courtesy AFP
The middle class will be the most affected by the new tax guidelines. Photo courtesy AFP

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The hopes of millions of people in the U.S. vanished today, after confirmation of the lack of an agreement and no voting on solutions to avoid the fiscal cliff.

The country is just one step from the fiscal cliff, but it does not mean that an agreement is far away, which leaders will be working on a solution in the coming days to establish measures to control new tax hike.

The new taxes will take effect today December 31, 2012 at midnight, and among some of these changes are the end of certain tax breaks for businesses, President Obamas health care tax law, and a 2% tax increase for workers (payroll tax).

Automatic cuts in government programs will also affect the unemployed, youth, and the elderly because benefits in unemployment and social security programs will be reduced.

It is expected that the middle class will be the most affected by these changes.

Another problem besides the fiscal cliff is that the U.S. may again reach the debt ceiling just a few months into 2013, and could usher in a new recession with 2 million jobs more to be lost.

Brenda.Colon@sandiegored.com

Omar.Martinez@sandiegored.com

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