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'Fiscal Cliff' A Major Concern for D.C. Officials

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The prospect of looming tax hikes and spending cuts, puts the District and surrounding areas in a vulnerable position, said D.C. Delegate Eleanor Holmes Norton and Mayor Vincent Gray, who are calling on Congress to make a deal in order to avoid going over the Fiscal Cliff

Del. Eleanor Holmes Norton said this region would suffer more than any other in the United States from a cut in government spending caused by a fall off the so called 'fiscal cliff.'

"We have a disproportionate amount of federal employees and federal contractors.," Holmes said. "The federal government spends a lot of its money in the District. We would be more in the hole than some states."

Backing up her comments was D.C. Mayor Vincent Gray, who says funding for educational and healthcare programs would be cut.

"We could fall right back into a recession again," Gray said. "We would experience reductions in our income tax revenue, sales tax revenue and our property tax revenue. In the aggregate of itself it would total about $50 million. Obviously, in and of itself A huge hit on the District of Columbia's income."

The House will be back in session Sunday evening to discuss any options on the table.

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