Thanks to the fiscal cliff compromise it looks like Fairfax
has temporarily been spared the full wrath of defense spending cuts known as
sequestration.
Some sources were reporting yesterday that as many as
800,000 federal contractors would have received layoff notices as early as
Wednesday if the sequester had gone into effect. The local region in turn could have lost as
many as 100,000 jobs. This in turn could have easily turned into an economic disaster for the local area as the resulting job losses would have spilled over into the broader economy.
Unfortunately, we are not out of the woods yet. Congress
only delayed the cuts by two months. Republicans
are hoping to use the sequester as leverage in another debt ceiling deal with
President Obama.
The fiscal cliff deal also saw tax rates rise, and not just
for wealthy Americans either.
WTOP
published an article that breaks
down expected tax increases for 2013 based on income level.
Unfortunately, every income level will see their tax levels increase at the start of the new year.
Unfortunately, every income level will see their tax levels increase at the start of the new year.
So at the start of the new year, we are all facing higher taxes and potentially massive layoffs in the months to come.
Happy 2013 indeed!
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