12/05/2012 - Tax increases are only a part of what lies ahead if Congress can't come to an agreement to avert the fiscal cliff by the new year. Massive spending cuts will also kick in — and those cuts will be felt throughout the economy.
Altogether, the cuts would eliminate more than $110 billion in federal spending in 2013 alone. Nearly half of that would be in defense spending. But there would also be cuts in education, health care and law enforcement. Much of that money goes to the states in the form of grants.
"State budget officers and policymakers have already had to make a series of really serious decisions on balancing their budgets," says Ingrid Schroeder, director of the Fiscal Analysis Initiative at the Pew Center on the States. "This is going to add a whole other layer of complexity to some already tough decisions that they've made."
Read the full article, Looming Spending Cuts Would Hit Hard All Over, on NPR's website.