If Congress and President Obama allow the nation to sail over the budgetary precipice known as the "fiscal cliff," Minnesotans would pay thousands more in income taxes. Forum Communications reports a Tax Foundation study found a family of four earning more than $87,000 would see an increase of more than $4,300 in annual income taxes. Spending cuts are harder to estimate but would affect Medicare payments to hospitals, education funding, and the National Guard, among others.
The Foundation has put together a primer on the tax increases and spending cuts that are scheduled to take effecct in the new year absent a new budget agreement.
Forum Communications also reports that some Capitol Hill voices, including Minnesota's Amy Klobuchar and North Dakota's Kent Conrad, are sounding optimistic about the chances of a deal to avoid the most dramatic impacts ... possibly reducing it to a fiscal pothole.