Fiscal Cliff Impact on Alabama

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By Ellis Eskew

The fiscal cliff deadline is approaching fast... And Congress remains gridlocked on how to balance the budget.

 

Political analyst Steve Flowers says if lawmakers can't reach a decision by January first, it could mean bad news for Alabama. That's because we depend heavily on federal dollars.

" We are very, very high in military. If you look at the number of people in the military, the number of bases that are here, it's really high based on our percentage of population. Then we have a large percentage of the population that depends on government assistance for living. So, those two combined are more devastating than some other states," said Flowers.

Flowers says he remains hopeful that a decision will be reached sooner or later.

Amber Jernigan with Keller Williams Realty is also anxiously watching to see what will happen.

She says 2012 had a great housing market, and there were even bigger hopes for the coming year. But now, she's not so certain.

"Obviously, if tax breaks expire and taxes increase that's going to affect the economy in general. People have less take home pay. They are going to have to pay more to the government and that will affect everything. There are tax breaks for home ownership that will expire as well," said Jernigan.

However, jernigan remains hopeful that congress will reach a compromise.. and the capitol city will still be able to thrive.

"Montgomery never sees the worst of the economy. We don't get the worst of the way that it is in most areas. So hopefully that will continue."



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