Ala. could lose thousands of jobs because of fiscal cliff -, GA News Weather & Sports

Ala. could lose thousands of jobs because of fiscal cliff

Gov. Robert Bentley warned of the possible loss of tens of thousands of jobs of Congress can't strike a deal and the country goes over the fiscal cliff, the combination of tax increases and mandatory sweeping spending cuts called "sequestration."

"If it takes place, we're going to lose jobs in this state" Gov. Bentley said Monday. "I've been told as many as 24,000 jobs if sequestration takes place."

With just days to go until the December 31 deadline, the impact on Alabama's economy if Congress and the president allow the country to go over the fiscal cliff is becoming clearer.

A recent study by George Mason University revealed that Alabama could have far more job losses than those predicted by Gov. Bentley.

According to the study, 26,845 Department of Defense jobs would be at risk if sequestration was to take place. Another 11,933 other federal government jobs could also be lost on January 1, 2013.

Gov. Bentley said he's not optimistic that Congress will reach an agreement with President Barack Obama and his negotiators.

"Everyone's taxes are probably going to go up" Gov. Bentley said.

The governor is in favor of sweeping spending cuts, but said that they need to be carefully considered.

"We have to solve this issue. We cannot live with a $16 trillion debt and it growing exponentially every day."

Gov. Bentley said he is not in favor of raising the tax rates on the top two percent of earners, like the White House has proposed, but he did say he is in favor of raising revenues because there isn't a choice in his view.

"Are we going to have some new revenue? Probably so. And whether or not they do it with the, doing away with deductions, whether or not they raise revenue on the wealthiest, as they keep talking about. But ultimately it's going to affect everybody."

Copyright 2012 WSFA. All rights reserved.


Powered by Frankly