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Fiscal Cliff May Hurt Small Business Owners

by KREX News Room
by John Dias

Story Created: Dec 28, 2012 at 7:09 AM MDT

Story Updated: Dec 28, 2012 at 7:09 AM MDT

GRAND JUNCTION, Colo.- Paying your taxes is inevitable, but according to financial experts, dishing out some more money may also be on the horizon. That is, if a compromise on the fiscal cliff isn't made in time.

“If we go over the fiscal cliff, taxes will increase,” said John Hildebrand, president of business development for Autopaychecks, Inc.

A deadline is set for the end of the year, but if politicians can't negotiate the issue on hand before than, that means an automatic tax increase for everyone.

Which is something Hildebrand says will greatly affect local businesses.

“For successful small business owners here in town, they are going to see up to $30,000,” said Hildebrand. “When business expenses go up, they tend to employ less people.”

Though officials at Browns Shoe Fit Co. in downtown Grand Junction don't think they will have to lay off anyone, owner Gregg Palmer says the possible tax increase is sure to put a dent in any wallet.

“You're coming into the first quarter which is always a little bit more difficult and a little bit leaner for most people,” said Palmer. “To have this on top of it isn't going to help things.”

“Anytime taxes go up, anytime you have any expense that goes up, something has to give,” said Barbara Traylor Smith, financial expert.

If companies aren't able to increase their revenues to cover additional costs, in this case, a tax increase, officials say you have start cutting.

“Local businesses have to get lean, they have to get smart about doing business,” said Hildebrand.

Officials say historically, when politicians go over the deadline, they quickly come to an agreement because of all the pressure.

Economic experts are also warning that failure to avoid this fiscal cliff could bring on a recession.

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Concerned citizen said on Saturday, Dec 29 at 12:26 PM

Truth be known Obama wants to go over the cliff. This is an important step in his plan of "fundamental change" he keeps promising. Plus an added bonus, according to many polls most people will blame conservatives. In his eyes this is a win win situation. I certainly hope you Liberals are happy, this is 100percent his doing, along with his cronies in the congress. They all should be fired, or not even paid in the first place. Fire them all and save the country some money.

Floyd said on Saturday, Dec 29 at 6:32 AM

Julia, isn't obama playing the blame game more than anyone else? Isn't obama pointing fingers more than anyone else? Over the last four years ALL he has done is point fingers and blame others, that, plus pushing an agenda that is destroying this nation. If, he were any kind of a man at all, he would have rolled up his sleeves and worked for ALL the American people instead of his cronies and those who give him monetary support. Instead, all he did was play the blame game and over use the race card to get what he wanted. There is nothing whatever in his agenda that includes bettering the American people. If there was, we would NOT be where we are today. Obama may have the gift of gab, but there is nothing about him that even comes close to resembling, "leadership".

Julia said on Saturday, Dec 29 at 12:23 AM

Why don't they just extend the current policies for another 6 months to a year, so they have some time to kick around the numbers and get a budget going. Are they really going to let the economy crash again? We have less than a week left and so far neither side has budged. As for those blaming one side or another, yes, democrats work, you think everyone in NY and Washington state is on welfare? Lets get real people can only be on welfare cash benefits for 24 months in most states. Also there are some republicans out there that want to protect the middle and poor classes. So for those of you that want to continue to complain, How is that pointing fingers working out for you so far, anything changed? As we see, it's not getting anything done on capital hill either. So lets all grow up and hope that the men and women in congress come to some rational compromise that will both side some what happy.

Anonymous said on Friday, Dec 28 at 1:24 PM

Let me sum it up for the 'muppets'. Governments spent money your as of yet unborn great (x10) grandchildren have yet to earn. They will be slaves to this debt. All so the connected can have their personal stores and surrounding areas beautified, and other assorted 'investments' in the future.

Floyd said on Friday, Dec 28 at 11:56 AM

If it weren't for those who vote republican, working, there wouldn't be any welfare class. So, if you democrats who make up 90% of the welfare class want to keep receiveing your checks, you need to remind your president who it is that is still paying taxes. Republicans are the majority of the middle class. All the democrats in congress are millionares, only a few of the Republicans are.

Watcher said on Friday, Dec 28 at 11:29 AM

If the Federal government would shrink about 50% to the appropriate size we could hire more people locally to take care of these issues.

Anonymous said on Friday, Dec 28 at 9:12 AM

If the Republican Party didn't hate the middle class so much we wouldn't be having this discussion.

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