With fiscal cliff 2013 approaching on January 2, it is struggling U.S. cities that stand to suffer the most if Congress fails to help.
These U.S. municipalities are already in terrible fiscal shape due to the effects of The Great Recession. Now they’re facing the effects of automatic tax increases and deep spending cuts of 9%, about $560 billion in total.
Like Gramm-Rudman-Hollings from 1985 that imposed automatic spending cuts, these powerful one-two combinations will floor cities that have unwisely come to rely on federal aid.
“Cities are going to be facing very rough waters for the next couple of years,” predicted Michael Pagano, dean of the College and Urban Planning and Public Affairs at the University of Illinois-Chicago.