Going over the fiscal cliff isn’t just bad at the national level. It will have an impact at the state level as well. State Comptroller Judy Barr Topinka says going over the fiscal cliff means paying more into Social Security. With less money in their paychecks, consumers have less to spend. “It’s like taking money away out of the state pocketbook,” Topinka said, “so that money will not be able to be spent.”
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Topinka says other areas of the state will suffer as well. “We’ll lose close to $1 billion,” Topinka said. “We’re going to lose grants that will impact on education, on our defense industries, on our manufacturing, on our farm, our agricultural products. Wait till everybody winds up with a $7 carton of milk. I mean, those subsidies are going to go in this."
For her office, Topinka says with less money coming in from taxes on consumer spending, there will be less state tax revenue to pay the state’s bill backlog that goes all the way back to July.