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Local businesses worry about fiscal cliff
From the mega corporations to the main street small business, going over the fiscal cliff could force major companies and even small businesses to close their doors and others may have to downsize.
In Hastings, News 5 spoke to small businesses who are worried about their annual profit. It's clear cuts have to be made somewhere.
And businesses are worried tax payers will be forced to spend less come 2013.
"If we do fall off the cliff what's going to happen to us? Who is going to own us or what are we going to do? What's going to happen?"
Rhetoric surrounding the fiscal cliff continues to loom over the heads of many. For small businesses in Hastings like Big Ace, they question, who will pay what and how much more?
"What are people going to have left in their pocket book to come spend with us to do their remodeling projects?" said Big Ace Manager Linda Dill.
Linda Dill has been the store manager at Big Ace for more than a decade.
"Here it's like you might not buy that shovel if it's not really broken, you might not like it, but you're still going to use it," said Dill.
According to CNN Money reports, among several tax cuts set to expire is the payroll tax cut, which is currently at 4.2 percent. In 2013, it's set to go back to 6.2 percent which means someone earning at least $50,000 would pay a thousand dollars more.
In downtown Hastings, Tammy Valentin Co-owner of Gary Michaels Clothiers fears a trickle down affect if the nation goes over the cliff.
"Prices will go up for us too from our vendors because they have to be able to cover their payroll," said Valentin.
Valentin hopes whatever deal leaders in Washington negotiate won't push consumers away.
"You still have to put food on the table, you still have college to pay for, you still have all those necessities that bites into a person's budget," said Valentin.
Last week there were talks about a payroll tax extension. However, according to reports, political analysts say don't count on it.
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