Local Business Owners Brace For Taxes As Fiscal Cliff Deadline Draws Near

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WACO (December 27, 2012)-Members of Congress are back on Capitol Hill, the President is at the White House, but there is still no compromise to avoid America's looming fiscal cliff.

However, talks between the President and Members of Congress are set for tomorrow. This will be the first time they've met since November 16th.

If President Obama and Members of Congress don't reach a compromise on the budget to avoid "the cliff," taxes will rise across the board for Americans.

The fiscal cliff has dominated discussions on Capitol Hill since election day. When the clock hits midnight on December 31st, the Bush Administration tax cuts on income and investments will expire. An end to the payroll tax holiday will come as well.

What begins from there are massive spending cuts for over 1,000 U.S. Government programs. Also, taxes related to President Obama's health care law will begin.

Hitting the national economy with the double whammy of tax increases and spending cuts is what's called going over the "fiscal cliff."

Here's where taxpayers come in. Economists say if the U.S. goes over the fiscal cliff, taxpayers could owe an average of $3,500 more per household.

The tax hikes could cause local businesses like Uncle Dan's Bar-B-Que in Waco to suffer.

"The future is very uncertain right now because no one knows what's going to happen," Owner Dan Henderson said.

"I just hope they don't kick the can down the road like they've done. I hope they give us something definitive to work with."

Henderson sliced us a piece of his mind. He fears more taxes could mean less business for his restaurant and his suppliers.

"It does concern me that their will be less disposable income for those people to spend," Henderson said.

But despite tax hikes, Uncle Dan remains optimistic.

"People aren't going to stop eating," Henderson said.

"But you learn to put one foot in front of the other, run a tighter operation, and learn to move forward."

As the window to avoid the fiscal cliff rapidly closes, America waits patiently on a compromise between President Obama and Members of Congress.

If a deal isn't reached, expect your wallet to be a lot lighter in 2013.