Topinka Warns Of Devastating Effects From Fiscal Cliff
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CHICAGO (CBS) — Illinois Comptroller Judy Baar Topinka says the state will face devastating consequences if the federal government goes over the fiscal cliff.
Judy Baar Topinka says Illinois will lose a billion dollars if automatic spending cuts and tax hikes take effect.
“People are really going to have that day of reckoning when they get their first paycheck in January,” said Topinka.
Topinka says the fallout from the fiscal cliff could push Illinois back into recession.
“I could see a federal recession and a recession in Illinois that would be even greater than what was going on nationally,” said Topinka.
State paychecks are already reflecting the cuts according to the comptroller.
“We have to because of future taxes,” said Topinka.
Topinka expects state employees to call her office thinking there is a misprint.
“It’s not a typographical error, they’re paying more,” said Topinka.
Topinka says that if a deal isn’t reached to prevent the increases the consequences will be devastating. She says a planned two percent increase in social security payroll taxes could Illinoisans up to $6 billion in take-home pay.