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Will lawmakers stop economy from going over fiscal cliff?

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    Mike Emanuel reports from Washington, D.C.

  • Duration 2:49
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Well the US economy is expected to plummet off these so called fiscal cliff unless something is done to change it starting January 1 of 2013 but some -- small business owners say.

A lack of action from the Obama administration and congress to prevent that from happening is already affecting their bottom line.

Chief congressional correspondent Mike Emanuel is live in Washington with more so exactly what are these small business -- -- Mike.

Well John they say many small businesses are holding off on opening new stores in hiring new employees until they have more certainty and confidence.

That congress and the president will not raise their taxes.

Small businesses are on the sidelines.

And clearly.

Not inclined to invest now -- -- until they see.

What's gonna happen between now and the end of the year.

If there is any business model that exemplifies the American dream and encourages entrepreneurship.

Its franchise.

However our prospects for growth they're slipping and amid increasing uncertainty from the impending fiscal cliff.

Their hope was congress would reach a short term deal with the White House to give some certainty until the next congress could consider an overhaul the tax code.

But the president and lawmakers are out on the campaign trail.

So they wait John.

There is so -- of congress and the president need to do have to work out resolved you know uncertainty and an analyst fiscal cliff issue.

Well John it's a huge list of items that are now being saved until after Election Day let's take a look the sequester those automatic cuts as part of last year's debt deal.

Income taxes rates go up the marriage -- penalty is due to return.

The Alternative Minimum Tax which would affect millions more people the estate tax exempt -- -- will drop the top rates on -- states will jump.

And in this capital gains and dividends top tax rate for long term capital gains will increase.

-- security payroll taxes due to a jumped from four point 2% to six point 2%.

And they got populated -- deductions and credits like the child tax credit some adoption benefits -- all go away.

Then you've got extended unemployment benefits and of course the Medicare doc fix.

Here the top congressional leaders on addressing the fiscal cliff.

While my comfort at all.

Listen -- house is done its job.

-- both the sequester and on the looming tax sites that'll cost our economy some 700000.

Jobs.

The senate at some point have to act we will continue with the middle class tax Karen.

-- the senate passed.

It's much much too early to give up I'm not going to get -- if they do give up -- -- there are concerns the shock to the economy could lead us to another -- John Mike thank you.

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