Why Economy Could Slow Even With 'Fiscal Cliff' Deal

No matter what happens with the "Fiscal Cliff," every working American is likely to see a substantial pay cut after Jan. 1-and that could slow the economic recovery. That's because the payroll tax holiday, which was launched in 2010 to help spur consumer spending, is scheduled to end this month. Though there's a chance it might be extended under a fiscal cliff deal, it's mostly been on the back burner with lawmakers.