The so-called "fiscal cliff" has already cost the economy about one million jobs this year, according to a report by the National Association of Manufacturers.
Economists have been warning that a combination of tax hikes and budget cuts scheduled to hit in January will push the economy into recession.
The new report says the economy is already feeling the effects.
Companies across the nation are laying off workers, leaving open positions unfilled and putting off major purchases.
The report says the economy could shed 6 million jobs through 2014 if Washington doesn't stop tax hikes and spending cuts from going into effect.
Economy Snap Shot
Meanwhile, the Commerce Department released a last snap-shot of the economy before Election Day, showing the economic annual rate has creeped up slightly from 1.3 percent to 1.7 percent.
The number still trails last year's 1.8 percent growth.
Economists credit a 2 percent jump in consumer spending and most of the rest to a surge in spending by the federal government.
Still, critics warn the weak economic growth is not enough to rapidly boost hiring and reduce unemployment.
Analysts doubt today's report will sway undecided voters in battleground states.