Fiscal cliff deadline looms

TERRE HAUTE, Ind. (WTHI) - You've heard about it building up, but it's clear not everyone knows what it is, or at least what it does.

The fiscal cliff.

It refers to the economic effects that could result from tax increases, spending cuts and a reduction in the U.S. budget deficit.

Federal lawmakers fear without resolution, going over "the cliff" could send the U.S. into another recession.

It's a concern for Baesler's Market if the decision doesn't go through.

"Taxes are going to go up and that's not a good thing as far as consumers' confidence is going to go down," Baesler's Market Owner Bob Baesler said.

That's just a start.

Without federal help, your paychecks will change because the payroll tax holiday will run out.

Workers will see their social security tax rates rise and less cash in their pockets.

"There's going to be changes for everybody and probably the biggest problem with the whole idea is that people really don't know how it is going to affect them," Baesler said.

Going over the cliff will also impact people who collect unemployment benefits.

Without federal extension, 40 percent of 5 million Americans could lose insurance benefits.

How about paying seven or eight bucks for a gallon of milk?

Dairy subsidies under the 2008 farm bill are set to expire Monday night, driving up the dairy costs.

All, if federal lawmakers can't agree by 11:59 p.m.

News 10 will continue to watch the fiscal cliff deadline.