The fiscal cliff: Much higher taxes for you

WWLP TV

Updated: Nov 21, 2012 4:17 PM

WEST SPRINGFIELD, Mass. (WWLP) — It's been all over the news since election night: the looming fiscal cliff. But how will it affect you?

If Congress cannot figure out a plan to cut the national debt, it likely means smaller paychecks, higher taxes, and severe budget cuts that could threaten millions of jobs. This would start in January.

Someone making between $40,000-65,000 per year would pay about $2,000 more in payroll and income taxes. Tax credits for students, teachers and children would be cut or disappear completely.

Certified Public Accountant Andy Pignatare told 22News that small business owners should think about taking action now. 

"Everybody who has a small business or owns a small business, if they need equipment, talk to your tax professional get it in place by the end of the year,” Pignatare said.

Small Businesses can write off close to $140,000 a year now, that could drop down to just $25,000 next year.

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