Unless a deal is reached, Bush era tax cuts will expire
Thu, 01 Nov 2012 18:55:41 GMT —
COLUMBIA (WACH) - With less than a week until election day, a concern for many is the state of the economy.
One of the biggest debates between leaders is taxes.
Right now, the President George W. Bush era tax cuts are set to expire at the end of the year, if no new deal is reached.
USC professor Dr. William Hauk says if that happens, 90 percent of Americans will feel the effect. The average American household could have to pay roughly $3,500 more in taxes.
"People have less money to spend. This hurts consumer goods and hurts investments and all sorts of knock on effects to broaden the economy. It could potentially push the economy back into recession," said Hauk.
Republicans would like to keep the current tax plan, while democrats are willing to let them expire.