It's called the fiscal cliff and if the country falls off of it, state economist Darrin Webb says that fall would be right into a recession.
"Certainly Mississippi would be in recession and we'd see dramatic impacts from that," said Webb.
To battle the deficit the cliff, at the beginning of the year, would automatically increase taxes and cut federal spending by about $607 billion. Webb says with Mississippi depending heavily on federal money, that type of measure would more than cripple the state. In 2010, about a third of the state's gross domestic product was represented by spending from the federal level. Even though the scenario sounds disastrous, Webb doesn't foresee any of it happening.
"I don't think anybody really expects us to go off the cliff," said Webb. "It was designed to be so horrendous that we would not go off the cliff so presumably cooler heads will prevail, some compromise will be made. We don't know what that looks like at this point."
Neither do congressional lawmakers. Although not speaking directly about the fiscal cliff, U.S. Senator Roger Wicker told supporters in his re-election speech about the challenges he sees with bringing down the national debt.
"When we talk about solving problems in this day and age, we talk about making tough decisions because we have a $16 trillion debt," said Wicker.
While Webb believes lawmakers will come up with something, it most likely won't be an overall solution that fixes all the concerns.
"My guess is we could see taxes increase and the expenditures, the spending, postponed," said Webb.
Webb says a study is in the works to fully examine what's at stake and what would happen if for some reason the fiscal cliff is hit.
Sunday, May 19 2013 10:35 PM EDT2013-05-20 02:35:37 GMT
Authorities have recovered the body of a 10-year-old boy who apparently drowned after an all-terrain vehicle overturned in a Mississippi creek. The search for the boy's younger brother continued Sunday. ColumbusMore >>
Authorities have recovered the body of a 6-year-old boy who apparently drowned after an all-terrain vehicle overturned in a Mississippi creek. The search for the boy's older brother continued Sunday.More >>
Monday, May 20 2013 11:17 AM EDT2013-05-20 15:17:56 GMT
A body discovered in Clinton Saturday night has led to a homicide investigation. Hinds County Coroner Sharon Grisham Stewart confirms a body was discovered, although few other details are known. The bodyMore >>
Clinton Police Department's Interim Chief Mike Warren said upon further investigation, it appears a disagreement over a woman may have led to the death of a Jackson man.
Sunday, May 19 2013 10:53 PM EDT2013-05-20 02:53:15 GMT
JPD searched a Jackson Home at 846 Brandon Ave., Saturday that netted four arrests, a variety of drugs and $1,500. "On May 18, 2013, The Jackson Police Department's Vice and Narcotics Unit responded toMore >>
JPD searched a Jackson Home at 846 Brandon Ave., Saturday that netted four arrests, a variety of drugs and $1,500.More >>
Friday, May 17 2013 7:16 PM EDT2013-05-17 23:16:53 GMT
One person has died in a crash near Harrisonville, MO, Thursday evening. The crash happened on Missouri Highway 7 and Walker Road. It involved a car and a tractor-trailer. Harrisonville is in Cass County.More >>
Savannah Nash celebrated her 16th birthday last week. She died Thursday when her car slammed into a semi while she was texting during her first time driving by herself.More >>
Saturday, May 18 2013 10:00 PM EDT2013-05-19 02:00:02 GMT
Observers are predicting a speedy confirmation to the federal bench for Jackson attorney Debra M. Brown. If confirmed, Brown would become the state's first black female district judge. Carl Tobias, aMore >>
Observers are predicting a speedy confirmation to the federal bench for Jackson attorney Debra M. Brown.More >>
Wednesday, July 11 2012 6:10 AM EDT2012-07-11 10:10:08 GMT
(WMC-TV) – Dozens of police recruits were injured during training exercises last week and the heat could be to blame. The entire current class at the police academy filed paperwork claiming to be injuredMore >>
Dozens of police recruits were injured during training exercises last week and the heat could be to blame.More >>
It's all about the odds, and one lone ticket in Florida has beaten them all by matching each of the numbers drawn for the highest Powerball jackpot in history at an estimated $590.5 million, lottery officials...More >>
Some lucky person walked into a Publix supermarket in suburban Florida over the past few days and bought a ticket now worth an estimated $590.5 million - the highest Powerball jackpot in history.More >>
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