Sen. Lamar Alexander, R-Tenn.NASHVILLE – If the federal government falls off the “fiscal cliff,” Tennessee and Georgia will be hard hit because of mandatory spending cuts, according to a study released Tuesday.
The nonpartisan Pew Center on the States says the expiration of federal tax cuts and the automatic spending cuts set to occur in January if President Barack Obama and Congress don’t reach agreement will have major consequences for states.
“While states would be affected in different ways, the one clear thing is that almost all states will be affected in some way by the different elements of the fiscal cliff,” said Anne Stauffer, project director at Pew Center on the States.
“Fiscal cliff” is the name used for about $400 billion of expiring federal tax cuts and $100 billion of automatic spending cuts that will come absent an agreement.
In a statement, U.S. Sen. Lamar Alexander, R-Tenn., said he is looking forward to “presidential leadership on fixing the debt and to working with the president and congressional leaders to get a result.”