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.
Thursday, June 20 2013 7:51 AM EDT2013-06-20 11:51:14 GMT
The Humane Society of the United States is asking New York to ban selling, importing or possessing wild pigs. This invasive species has established breeding populations across New York. Animal officialsMore >>
The Humane Society of the United States is asking New York to ban selling, importing or possessing wild pigs.More >>
Thursday, June 20 2013 7:49 AM EDT2013-06-20 11:49:21 GMT
The Agency on Natural Resources is holding a hearing to learn more about the Lowell Mountain Wind project killing endangered bats. Green Mountain Power says it would have to stop its turbines from spinningMore >>
The Agency on Natural Resources is holding a hearing to learn more about the Lowell Mountain Wind project killing endangered bats.More >>
Wednesday, June 19 2013 11:54 PM EDT2013-06-20 03:54:35 GMT
Cornwall is the latest town saying no to a plan to bring natural gas to the International Paper Mill at Ticonderoga. "I will fight you tooth and nail, I don't want this for any of us on any level," saidMore >>
Cornwall is the latest town saying no to a plan to bring natural gas to the International Paper Mill at Ticonderoga.More >>
Wednesday, June 19 2013 6:12 PM EDT2013-06-19 22:12:23 GMT
A big drug sweep in Springfield this morning targeted drug dealers.More >>
Dozens of alleged drug dealers are behind bars after police conducted a large drug sweep throughout Windsor County. WCAX's Jennifer Reading was with police and got exclusive access during Wednesday's roundup.More >>
Wednesday, June 19 2013 4:36 PM EDT2013-06-19 20:36:22 GMT
Burlington police are investigating a hit-and-run accident. Police say Monday at 4:10 p.m., a woman was walking in the crosswalk at College St. near the Waterman Building at UVM, when she was hit by anMore >>
Police are asking the public for help identifying the suspect in a hit-and-run accident on College Street in Burlington.More >>
Wednesday, June 19 2013 10:03 AM EDT2013-06-19 14:03:21 GMT
A former Customs Agent will sell more more than 150 guns that were seized from his Brattleboro home during a 2011 raid. Special Agent Richard Bernholz pleaded guilty Tuesday in federal court to filingMore >>
A former Customs Agent will sell more more than 150 guns that were seized from his Brattleboro home during a 2011 raid.More >>