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Fiscal Cliff's Possible Effect on Local Business

By: Tyler Thomason
Updated: December 11, 2012
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A cafe can get noisy.

But with employers facing a possibility of forking over more in payrolltaxes, silence could soon consume the kitchen.

"Are we going to be able to sell enough food to cover that new employee, things like that, so yeah, it definitely could affect who we hire and when and how many hours we can give them," says Tammy Varney.

Varney owns Meridian Dessert Cafe in Rogers, and like many business owners, worries what's to come on the other side of that Fiscal Cliff.

"The economy is growing and we're looking better, but it's defintely not a situation where we're out of the woods," Varney says. "I think everyone is a little cautious about how they hire."

And at the Meridian Cafe, everything is made from scratch, which requires a very specific type of skilled labor.

However, if those tax breaks aren't extended, the plans to expand that labor might be cut.

"We need a skilled labor that knows French pastry, which is difficult to find in the first place," Varney says.

"Expanding is something that we would like to do, but the more we pay out in employee taxes, the more we have to look at that bottom line."

Varney still plans to grow her business.

"I still think, particularly in Northwest Arkansas, the time for small business is still a great opportunity."

But the extent of that growth depends on this year's Fiscal Cliff finale.

"For me, it is a pretty big deal."

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