Fiscal Cliff Could Cause $3,500 Tax Increase for Minnesotans

Updated: 12/31/2012 7:54 AM By: Tim Sherno

The average Minnesota resident could see a tax increase of nearly $3,500 dollars in 2013 if fiscal cliff measures are enacted New Year's Day.

Superior, Wis., resident Scott Sorenson drove the Minneapolis for Sunday's Viking's game against the Packers. Sorenson says the potential loss of income is upsetting, "It really bothers just about anybody I know."

Nicole Middendorf is CEO at Prosperwell Financial. She says any potential tax increase will have the greatest impact of earners who cannot afford the higher bill with their current income, "If you are so tight already, how are you going to come up with three grand at the end of the year?"

Middendorf suggests avoiding a large tax bill at the end of the year by making bite-sided budget adjustments early in the year, "Like looking at your cell phone plan, looking at your life insurance, looking at your health insurance, anything, your cable bill, anything you're paying on a monthly basis, it's looking at that and saying what can i cut?"