SALISBURY, Md. - We're days away from tipping the fiscal cliff. Over $1 trillion in federal spending cuts could kick in, tax breaks and payroll taxes expire and $2 million Americans will lose their unemployment benefits.
However, many want to know 'How much money will I lose and how soon' " Experts say prepare for a decrease in your first paycheck in January.
"Ten to twenty dollars per month for the average person. The more you make the more you're going to see a reduction," said Steve Hill, Financial Advisor with Livingston Hammond and Hill Wealth Management in Salisbury.
Small businesses are bracing for the change as well. If it effects their bottom line, Hill says expect lay offs and a possible hiring freeze. It's a gamble for investors, who could get slapped with a tax on capitol gains.
"If you bought a stock for $10 and sold it for $20, that $10 difference between what you paid for and what you sold it for, is considered to be a taxable gain," said Hill.
Experts say either sell some stock now, or move your investments to short term bonds. There is a bit of good news. If a deal is reached later on in the year, Congress has the power to offer some sort of refund, to compensate Americans for the loss.
"We can come in and solve this in January and February, and make all the changes retroactive to January 1st, and take the time to get it right," said Maryland Congressman Andy Harris.
The house is set to reconvene Sunday evening at 6:30 to continue discussions on averting the fiscal cliff.
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