How will the 'fiscal cliff' impact you?

How will the 'fiscal cliff' impact you?
President Barack Obama speaks to reporters about the fiscal cliff in the Brady Press Briefing Room at the White House in Washington, Friday, Dec. 21, 2012. (AP Photo/Charles Dharapak)
BOISE, Idaho (KBOI) - The average American will pay an extra $3,500 a year if lawmakers can't strike a deal. This political fighting is frustrating for many Boise residents.

"Instead of sitting down and being reasonable and talking about this like we should run a political system, they're saying 'no this is my side, no this is my side,' and we're causing a mass panic that we don't need to towards the people of the country," says Steven Campros, who lives in Boise.

"It's a problem with Congress not being able to compromise on each of the party's main line of ideas, raising taxes and cutting entitlements, and you got to come to the middle," says Lisa Pepin, a Boise resident.

And it's taxpayers, like you, who will take the hit. For example, take a look at these estimates from the Washington Post.

A single person with no children who makes $20,000 a year will see their taxes increase next year by $372. If we go over the cliff... they'll pay more than $800. Their taxes will essentially double...and it gets worse for married people with children.

Families with two children can expect to pay two and a half times as much if Congress doesn't reach a compromise. But it's the middle class and wealthy people over 65 who will get hit the hardest.

Those making about $50,000 a year will pay more than 12 times as much while people earning $120,000 will pay almost 40 times more in taxes.

Less money in your account means less spending which will likely drag the economy down.

"It's just going to take money right out of my pocket. As a business owner people aren't going to have the money to call me to do the business. It's going to effect everybody," says Lou Real, a Kuna resident.

If Congress can't come to an agreement by Tuesday those dramatic tax increases kick in automatically, and 88 percent of American taxpayers will have to pay for it.

Click on the link below to find out how the fiscal cliff will impact your taxes.
How much will my taxes go up?