Federal Fiscal Woes Could Mean Billions in Higher Taxes
We'll all share the politicians' pain
HARRISBURG — Pennsylvanians will face billions of dollars in higher taxes unless Congress acts by the end of the year to defuse a threatening combination of tax increases and spending cuts contained in the so-called "fiscal cliff."
A recent report by the state's Independent Fiscal Office, Pennsylvania's version of the federal Congressional Budget Office, suggests the fiscal cliff would drain billions from Pennsylvania's economy, putting a strain on state tax revenues and the state budget. Based on estimates from the Tax Policy Center, a nonpartisan think tank in Washington, D.C., the IFO projects the fiscal cliff will raise federal taxes by $536 billion — with about 4.1 percent of that total, or $22 billion, coming from the pockets of Pennsylvania taxpayers.