Arizonans would be hit hard by fiscal cliff - WTVM.com-Columbus, GA News Weather & Sports

Arizonans would be hit hard by fiscal cliff

Posted: Updated:
  • NEWSMore>>

  • Female soldiers invited to apply for ranger school

    Female soldiers invited to apply for ranger school

    Tuesday, September 16 2014 11:24 AM EDT2014-09-16 15:24:06 GMT
    The army is opening its doors to female soldiers looking to attend ranger school.More >>
    The army is opening its doors to female soldiers looking to attend ranger school.More >>
  • Muscogee County School Board approves redevelopment referendum

    Muscogee County School Board approves redevelopment referendum

    Tuesday, September 16 2014 11:21 AM EDT2014-09-16 15:21:02 GMT
    It was unanimous for the Muscogee County school board Monday night, agreeing to team up with the city of Columbus in giving a boost to under-developed areas. This comes just seven weeks before the publicMore >>
    It was unanimous for the Muscogee County school board Monday night, agreeing to team up with the city of Columbus in giving a boost to under-developed areas. This comes just seven weeks before the public will vote on the Redevelopment of Powers Law.More >>
  • St. Luke School headmaster to retire

    St. Luke School headmaster to retire

    Tuesday, September 16 2014 10:59 AM EDT2014-09-16 14:59:45 GMT
    Mrs. Ann McDuffie, Headmaster of St. Luke School, has announced her decision to retire at the end of the current school year, in May 2015. McDuffie has worked in education for 41 years with eleven yearsMore >>
    Mrs. Ann McDuffie, Headmaster of St. Luke School, has announced her decision to retire at the end of the current school year, in May 2015. McDuffie has worked in education for 41 years with eleven yearsMore >>
PHOENIX (CBS5) -

Time is running out for Congress and the president to avoid the fiscal cliff.

If lawmakers can't reach an agreement by Jan. 1, an assortment of tax hikes and spending cuts will kick in, that some say will trigger another recession.

John Mathis is a professor of global economics and finance at the Thunderbird Global School of Management.

He told CBS5 that every Arizonan would be impacted by the fiscal cliff.

"That would cause Arizonans to be much more conservative in their spending until some sort of clarity comes forth from what's going to happen to taxes," said Mathis.

As it stands now, if the fiscal cliff's tax increases kick in, the average taxpayer's income tax will go up around $3,500.

If you make less than $20,000 a year you'll pay close to $600 more in taxes.

If you make between $40,000 and $64,000 your taxes go up around $2,000.

If you make more than $108,000, expect to spend more than $13,000 in added taxes.

Also, if the 2 percent payroll tax holiday disappears, someone making $50,000 a year will take home about $83 less per paycheck.

"They probably are not going to change their spending habits, but definitely not going to spend extra," said Mathis. "That negative would cause sales in Arizona to fall and sales tax revenue to fall."

The fiscal cliff's spending cuts would also hit Arizona particularly hard, with billions of dollars slashed from the military.

That would impact Luke Air Force Base and surrounding aerospace and defense businesses.

According to a George Mason University study, that could result in the loss of 35,000 jobs and a $3 billion hit to Arizona's economy.

"We do have a significant dependence on military expenditure," said Mathis. "We have to see how it all plays out."

Head Start programs and subsidized child care would also take a hit if the U.S. hits the fiscal cliff.

Lawmakers are currently scrambling to get a last-minute deal done.

Copyright 2012 KPHO. (Meredith Corporation) All rights reserved.

 

 

  • Most ReadMost ReadMore>>

  • When disciplining a child goes too far

    When disciplining a child goes too far

    Tuesday, September 16 2014 8:57 AM EDT2014-09-16 12:57:00 GMT
    Pending child abuse charges against star Minnesota Viking running back Adrian Peterson has brought spanking back under public scrutiny after photos of his bruised child surfaced. News Leader 9's Brittany
    More >>
    Pending child abuse charges against star Minnesota Viking running back Adrian Peterson has brought spanking back under public scrutiny after photos of his bruised child surfaced. News Leader 9's Brittany Dionne spoke with local experts to find out when spanking becomes abuse. More >>
  • Columbus Police searching for motor vehicle theft suspects

    Columbus Police searching for motor vehicle theft suspects

    Monday, September 15 2014 10:53 AM EDT2014-09-15 14:53:57 GMT
    Columbus Police are requesting the public's assistance identifying three suspects responsible for two unrelated motor vehicle thefts.More >>
    Columbus Police are requesting the public's assistance identifying three suspects responsible for two unrelated motor vehicle thefts.More >>
  • CPD searching for robbery suspect

    CPD searching for robbery suspect

    Tuesday, September 16 2014 6:17 AM EDT2014-09-16 10:17:08 GMT
    Columbus police need your help identifying suspects involved in a robbery. The attached pictures were taken from surveillance footage from the M&N package store on Cusseta Road.       More >>
    Columbus police need your help identifying suspects involved in a robbery. The attached pictures were taken from surveillance footage from the M&N package store on Cusseta Road.       More >>
Powered by WorldNow

1909 Wynnton Road
Columbus, Ga. 31906

FCC Public File
publicfile@wtvm.com
706-494-5400
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and WTVM. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.