If officials in Washington don't reach a deal to avert the "fiscal cliff," Missouri could see a hit to its economy and budget.
The Federal Funds Information for States estimates Missouri could lose $1 billion of Defense Department spending on contracts and military institutions if federal spending cuts take effect in the new year. The Washington-based organization estimates those automatic cuts also could result in a $125 million reduction in federal grants to state programs, such as public schools and early childhood programs.
Missouri Congresswoman-elect Ann Wagner says she would not support any plan to increase tax rates to avoid the so-called “fiscal cliff.”
Failure to reach a deal before January First would result in immediate tax increases and across the board spending cuts.
Wagner spoke at a luncheon of the St. Louis Regional Chamber and Growth Association on Tuesday. On the issue of the so-called “fiscal cliff” said she supports a compromise to generate revenue by reforming the nation’s tax code, while also preserving the Bush-era tax cuts on the wealthiest 2-percent of Americans.