WACO (December 09, 2012)- President Barack Obama and House Speaker John Boehner met for the first time in weeks at the White House Sunday to discuss the upcoming fiscal cliff deadline.
Economists agree "the cliff" could throw us back into a recession if a resolution on the budget isn't met by President Obama and members of the U.S. Congress by December 31st.
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.
Confused yet? 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.
Waco financial consultant, Kendall Lovett, says he's been gearing up clients for "the cliff" for weeks.
"Taxes could rise across the board, and the U.S. Government pulling out on programs could cause major job loss," Lovett said.
"It's not good for the market and it's not good for the economy."
The tips, Lovett says, to survive pending tax hikes are simple.
"Reduce your debt as much as possible, stay away from credit cards as much as possible, and pay cash for things because it makes you aware of how much money you're spending," Lovett said.
"Also, if there are any retirement programs you can take advantage of, it would be in anyone's best interest to do that."
The fiscal cliff could potentially lower the U.S. debt by billions, but many members of Congress are worried about long term effects.
A solution is expected to be made on Capitol Hill between President Obama and members of Congress, but time is running out. Until a resolution is met, America will wait to learn her future.