EUGENE, Ore. — With just five days before the fiscal cliff, Senate Majority Leader Harry Reid admits a deal seems unlikely.
President Obama returned to Washington Thursday for a last-minute push.
We’ve been slowly rolling toward the fiscal cliff, and with just five days out, local taxpayers are on edge.
“I am, but I think at the same time it will be kind of a wake-up call to people because, in America we just keep spending money like it grows on trees,” said Eugene resident Susan Garver.
“It’s inevitable you know taxes have to go up something has to happen,” said Jackie Stokes, who’s visiting Eugene.
“It’s been a very interesting year for year-end income tax planning. There is just so much uncertainty. Nobody is really sure what’s going to happen,” said Faith Quimby, Isler CPA Tax Manager.
But Quimby says if no deal is reached, your taxes are going up. A taxpayer making between $50,000 and $75,000 will see an average increase of $2,400, according to the Tax Policy Center. That’s $92 taken out of a bimonthly paycheck.
“It will hurt the economy really badly. People will have so much less money,” Garver said.
“We have been advising our clients that it is probably a good idea to assume that the rates will be going up,” Quimby said.
For most households, the two biggest increases would be the expiration of the temporary cut in Social Security taxes and the expiration of the 2001/2003 tax cuts.
And then there would be the child deduction cut.
“Under the age of 16, the credit has been $1,000. Now it’s going to be halved and it will be $500, and so those types of things will have a big impact,” Quimby said.
So as the clock ticks, many wait to see if it’s going to be a last-minute deal or just a deadlock.
“This might be the moment for people to engage with the government and realize we have to control our spending somehow,” Garver said.
“Based on the past, I would say no, they are not going to,” said Susan Connoly.
“I am hoping they can do this in the eleventh hour, but we will see,” Stokes said.
The House of Representatives will remain out of town until Sunday night.