While holiday shoppers got the season off to a hot start, a warning Monday from the White House that the approaching Fiscal Cliff could cause Americans to hang onto their money, and concerns over next year's taxes could put a crimp in the rest of the holiday spending season.
"But truthfully it is unlikely that that would start to happen during the holiday season," said St Michael's College Economics Professor Patrick Walsh. "It wouldn't be until January or February where people start looking at their paychecks and start saying, 'oh my gosh I am making less money, I need to cut back.' So I don't think it would have that much impact on the holiday season. It could potentially have a large impact on the overall economy next year."
While he is not a political scientist, Walsh guesses Congress and the President will let the tax cuts expire and spending cuts go into place, but then work out a deal a few days later. "They can swoop in and change some of those taxes, postpone some of those spending cuts because this Congress wants to look like the heroes who saved the situation," he said. "So it maybe politically easier for them to let us go over the cliff and pull us back."
While holiday shopping may continue on its current track this year, next year could be a completely different story, depending on how soon Congress and the President can come up with a budget deal.
Walsh said it is more people's employers and businesses who are focused a lot more on what's going on in Washington, and they may start taking steps to pull back on new hires or production.
Wednesday, May 22 2013 7:20 AM EDT2013-05-22 11:20:51 GMT
Sheriffs say a body found floating in the waters off the Florida Keys is that of a Vermonter. The Monroe County Sheriff's office says early Sunday morning, two people fishing off a bridge reported seeingMore >>
Sheriffs say a body found floating in the waters off the Florida Keys is that of a Vermonter.More >>
Tuesday, May 21 2013 11:22 PM EDT2013-05-22 03:22:19 GMT
Residents in Sheffield say the news that three men have admitted to killing Pat O'Hagan in 2010 came as a shock, but it's information they thought would have come sooner. "A certain measure of reliefMore >>
Residents in Sheffield say the news that three men have admitted to killing Pat O'Hagan in 2010 came as a shock, but it's information they thought would have come sooner.More >>
Tuesday, May 21 2013 8:00 PM EDT2013-05-22 00:00:26 GMT
"It's right up there the top of the list of frustrating cases," said Bill Sorrell, D-Vt. Attorney General. Investigators say they've had three suspects in Pat O'Hagan's death since shortly after the Sheffield grandmotherMore >>
Federal court filings show the state may never charge the suspects in the murder of a Vt. grandmother, because there is not enough evidence. But the state's top prosecutor says convicting Pat O'Hagan's killers is still a top priority.More >>
Tuesday, May 21 2013 4:50 PM EDT2013-05-21 20:50:11 GMT
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A St. Albans teen will spend at least a couple of years behind bars for a DUI accident that killed his passenger.More >>
Tuesday, May 21 2013 7:32 PM EDT2013-05-21 23:32:20 GMT
A former animal control officer charged with two counts of prohibited acts was arraigned Tuesday morning. Gary Francis is accused of asking two women to show him their breasts for money. Francis pleadedMore >>
A former animal control officer was in court Tuesday, charged with soliciting women to expose themselves.More >>
Tuesday, May 21 2013 5:48 PM EDT2013-05-21 21:48:12 GMT
A pair of siblings pleaded innocent to a string of burglaries in Rutland that police say funded their heroin addiction. Todd Miller, 28, and his sister Amanda Miller, 30, pleaded not guilty. The pair isMore >>
A pair of siblings pleaded innocent to a string of burglaries in Rutland that police say funded their heroin addiction.More >>
Tuesday, May 21 2013 10:03 AM EDT2013-05-21 14:03:49 GMT
A Middlebury man has pleaded not guilty to federal arson charges stemming from a fire at a Pittsford car dealership back in July 2011. Police said they found 29-year-old Steven Browne behind the wheelMore >>
A Middlebury man has pleaded not guilty to federal arson charges stemming from a fire at a Pittsford car dealership back in July 2011.More >>