November 2, 2012 – Alabama’s tax policies and reliance on defense spending make the state especially vulnerable if Congress fails to avoid the “fiscal cliff” of tax increases and spending cuts set to take effect next year. Almost everyone in the country will take a financial hit if lawmakers fail to agree on a debt-reduction plan in the next 30 days. Paychecks will shrink and tax burdens will increase. Schools, military bases, hospitals — pretty much any service that relies on federal funding — will feel the impact. And economists warn that the country would slip back into a recession. In some respects, Alabama would experience greater pain than other states.
Link to Full Article: http://www.montgomeryadvertiser.com/article/20121202/NEWS02/312020018/-Fiscal-cliff-threat-looms-large-Alabama-Defense-cuts-rising-federal-taxes-would-hurt-state-budgets?odyssey=tab|topnews|text|