What happens if the fiscal cliff isn’t resolved?

CHICOPEE, Mass. (WWLP) — House Speaker John Boehner said Friday that no progress has been made so far in resolving the fiscal cliff.

If it's not resolved by the start of next year, here's an overview of what will happen.

The bush-era tax cuts will expire, meaning higher taxes for high and middle income residents.

The payroll tax cut will expire, averaging about 1,000 dollars a person in social security taxes.
Extended unemployment benefits will expire.

And there will be a series of across the board education, health, law enforcement and military cuts.

Chicopee Mayor Michael Bissonette told 22News, "The reality is that everyone across the board is going to be affected not in the same way but I think you'll see some changes to Medicare eligibility likely see Medicaid drastically change and I think you'll see issues with amount of money that goes into certain programs across the board."

Most economists agree that there will be some compromise, but cuts are inevitable.

Copyright 2014 WWLP TV. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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