Fiscal cliff deal comes with good and bad news for Floridians
TALLAHASSEE — Congress may have kept the nation from going over the fiscal cliff, but it failed to avert a multibillion dollar hit to Florida's struggling economy.
The decision to let the 2010 deduction in the Social Security payroll tax expire will cost Floridians an estimated $6.5 billion, said Sean Snaith, director for Institute Economic Competitiveness at the University of Central Florida.
With 7.1 million Florida households seeing a tax increase, the result will be a contraction in the state economy, Snaith said. "It's going to provide a headwind in terms of our recovery that's less money spent on child care, groceries or clothing,'' Snaith told the Times/Herald. "The net effect is it's going to be a drag on growth.'' (story here)