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Illinoisans Should Be Concerned About The Fiscal Cliff

There's still no compromise on how to keep the nation from going over the fiscal cliff. Patricia Cutilletta [[Coo-ta-letta ]], with Morgan Stanley in Chicago, says everyone should be concerned about the nation's finances because ultimately, you'll feel the impact in your wallet.

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Cutilletta says going over the fiscal cliff could impact the gross domestic product by up to five percent, and send the nation back into recession.

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She adds the fiscal cliff is already having a negative impact on business and the economy.

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If nothing is done, Cutilletta says there will be a substantial increase in income taxes, estate tax, and payroll taxes. She also says there will be a drastic cut in federal spending, which means many government programs will be restructured. Right now the nation has about 16-point-two-trillion dollars in debt, just under its limit of 16-point-four trillion. It's likely the nation will go over its limit within a month, which means it could very well default on U.S. debt. That would have a worldwide implication. Cutilletta says some kind of compromise would help for the time being, even if that just means extending the Bush tax credits on some high income earners.

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