July 23, 2014

What happens if we fall off the cliff?

Lawmakers are getting ready for the final dramatic act to avoid a fall off the fiscal cliff Tuesday. Creighton University Economist Dr. Ernie Goss isn’t impressed with the drama. Creighton University Economist Dr. Ernie Goss says this is “political theater at its worse.

He isn’t holding out for much success even though President Obama is meeting with Senate and House leaders today in what could be the final hope of coming up with a deal. He says if one isn’t reached our first paycheck in 2013 will reflect the tax changes.

He says the 2% tax cut will revert back to the old rate. He says depending on the employer withholdings will also change but eventually we will have to ante up there too.

Goss says there will be more people falling under the Alternative Minimum Tax guidelines. He says that number will jump to 30-million Americans. This will limit deductions for those making more than $74,000.

Goss says the best solution is for Congress to agree to the Simpson – Bowles plan, fundamental tax reform, reduce rates and cut the deduction.