WASHINGTON (WUSA) -- Talks continue in Washington Wednesday on the so-called Fiscal Cliff, a mix of tax increases and spending cuts that will take effect next year if lawmakers don't stop them. Republicans and Democrats have less than 50 days to come up with that agreement.
Today, President Obama will meet with top American CEOs. Yesterday, labor leaders went to the White House to share their position on what should be done.
If the nation is allowed to "go over the Cliff," the Tax Policy Center estimates the average household faces a tax increase of $3,500. The Center estimates that overall taxes could get hiked by more than $500 billion next year. Nearly 90 percent of Americans would pay more in taxes, mainly because of the expiration of a cut in Social Security taxes and many of the Bush era tax cuts going away. Low-income households would pay more due to expiration of tax credits in the 2009 stimulus. High-income households would be hit hard by higher tax rates on ordinary income, capital gains, and dividends and by the new health reform taxes.
Americans don't have a lot of faith that Congress will get the job done. A new poll shows many Americans think lawmakers are too far apart. Half told Pew Research they think the lame-duck Congress won't reach a deal.