Local Expert Explains What Fiscal Cliff Could Cost Families

An OSU professor told Channel 8 she anticipates Congress has about a 25 percent chance of reaching an agreement before the end of the year and that could cost families.

"If you have children, if the Earned Income Tax Credit will be reduced, the Child Tax Credit will be reduced, the child care tax credit will be reduced," said Dr. Laura Belmonte.

She added that if the nation goes over the Fiscal Cliff, everyone's taxes will go up, regardless of income level, due to the expiration of the Bush Tax Cuts.

Belmonte said with the measures that pertain to the Alternative Minimum Tax, a family with children earning about $75,000 a year could pay an additional $3,700 in income taxes.

She said cuts to the Defense Department could also affect Oklahoma families.

"In Oklahoma, with six military bases, those cuts will have an immediate impact."

In fact, she said if the country goes over the Fiscal Cliff, people could see changes as early as this week.