NEW YORK (CNNMoney) - States would see massive cuts in federal spending should the nation fall over the fiscal cliff, according to a new report. But they could also see their tax revenue jump as federal tax rates rise.
The fiscal cliff is a combination of expiring tax policies and federal spending cuts that are set to take effect in January. President Obama and lawmakers are now scurrying to come up with a plan to avoid this scenario, which the Congressional Budget Office projects would push unemployment above 9% by the end of 2013 and shave 0.5% off the nation's economy.