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- iHaveNet.com: Politics
by Alex M. Parker
Debt panel's failure could hit millions of Americans in the pocketbook, but picture won't be clear until 2013
The so-called super committee, tasked with finding at least
The failure, while not entirely surprising, will also send shock waves through the legislative process, affecting
nearly all of the bills
No one knows exactly how it will all play out. Many expect
Tax Hikes
The payroll tax cut, enacted as part of the tax cut compromise in late 2010, is set to expire at the end of the year, and is worth
There's another, more indirect, way that the super committee's failure could affect an average person's taxes. If the triggers go into effect, federal funds will dry up for many state-run programs, forcing states to decide whether, and how, they'll be able to make up the difference. It could lead to higher sales or income taxes in the states.
Government Services
While most entitlement programs are exempt from the sequester, there will likely be across-the-board cuts in most non-defense federal programs. Richard Kogan, a budget expert with the CBPP, estimates that most agencies will see their budgets slashed by as much as 9.3 percent in 2013, in addition to cuts the agencies have already made this year. How these cuts will take form won't be clear until the budgets are drawn up, but it could mean government services across a wide spectrum of sectors will suffer. For instance, wait times for tax rebates and passports could increase. While
Upside
At least in the short term, there are some reasons why Americans might be better off due to the super
committee's failure.
Debt Super Committee Deadlock Raises Tax Fears
In a new Washington Whispers poll, 40 percent said that they expect taxes to increase as a result of the inability of the so-called debt super committee to produce a plan this week to trim spending by
Because the committee didn't do its job, several triggers could kick in by early 2013, including a tax hike as the Bush tax cuts end.
But our poll also shows that many Americans didn't think
The Whispers Poll
As the congressional "super committee" readies its plan to cut the nation's debt, what worries you most about its potential impact?
-- Higher taxes 40%
-- It won't work and debt will increase 37%
-- Raising the retirement age 11%
-- Deep defense cuts 7%
-- Cutting the mortgage deduction 5%
Source: The Synovate eNation Internet poll was conducted November 11-15 among a national sample of 1,000 households by global market research firm Synovate.
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