SOUTH JERSEY – the looming Fiscal Cliff could have serious consequences for both families and small businesses.
It's a term that's been in the public discussion since the election... The so-called Fiscal Cliff.
The complicated thing is that it's not any one thing, however, but a combination of events.
We spoke to a financial expert, John Risley of L.O. Thomas & Co., who said that this Fiscal Cliff is a looming deadline, a date when a series of cuts in federal spending will take place, coupled with an increase in taxes.
According to professor of finance Michael Busler at Stockton College, that increase in taxes could equate to about $3500 dollars more being paid by the average family, coming right out of your pocket.
Small businesses in the area could also be hit by higher taxes as well, as some of them are within the top brackets.
Small businesses in the area don't just have to worry about tax increases, they also have to contend with new healthcare legislation that would require them to provide health insurance to their employees, which only adds to the uncertainty.
Dr. Busler's advice to the average family? Speak to a financial planner, so that you can best prepare for the Fiscal Cliff.