11/8/2012 8:30 PM ET
|Heading for the fiscal cliff
You'll hear a lot about the fiscal cliff in the news from Washington and Wall Street through at least the end of the year. Here's what it is.
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Nov 9, 2012 2:11PM
Nov 9, 2012 2:11PM
I just read the stupidest thing on here.....somebody said we should ALL pay more taxes?! Are you kidding me have you looked at your paycheck and how much taxes come out of it? Have you seen the sales tax you pay at stores? If the government can't function on what all working American's already pay in taxes then shame on them and let us jump over that fiscal cliff NOW!!! We already work too many days a month to pay our taxes!!! Also someone said people should stop shopping and eat at home....well guess what if that happens then good luck to those looking for jobs, and goodbye America as we know it. It's time for the American people to make Government live up to the Constitution Of the People, For the People, and By the People!!! Stop spending the working Americans money Obama....let's only help those who can't help themselves.....not the one's that won't help themselves!!!!!
Nov 9, 2012 2:10PM
Nov 9, 2012 2:10PM
Nov 9, 2012 2:09PM
I'm at the bottom of the ladder - and there is no place for me to go down to
Just like Europe austerity caused at - and by the top..... the only cuts Washington is talking is to the people's benefits they earned.....not one cent cut to their healthcare - not one day less in vacation....
Gee, i didn't hear of any cuts to their bonuses......
CUT THE MILITARY -.- BRING THE TROOPS HOME.......END FOREIGN AID........BURN THE SECRECY ACT... AND LET THE PEOPLE SEE THE TRUTH........END THE SLUSH FUND KNOWN AS THE WAR ON DRUGS....CUT THE SPACE PROGRAM........
Nov 9, 2012 2:09PM
Allyou have to do is look at the election map . USA Today day after the election
The people in blue will not see anything if we fall off the cliff.
these people do not have income other than OBAMA give aways to get votes
if you are red look out
I am 70 and retired and find myself looking for a job to cover my losses.
My retirement has dropped 10% since the re-election
if things do not change I will have to become one of the blue folks
Nov 9, 2012 2:08PM
I for one am actually quite in-favor of dumping the Bush tax cuts, and doing so was one of the President's promises during his re-election campaign too, so I don't expect this item to be negotiable myself. Higher tax rates on high-earners and on capital gains held less than 2 years will encourage productive investment at home and discourage overseas investment somewhat too.
I might like to see a separate fix on the estate tax, as I would consider a return to the rates in-effect in 2001 onerous, and yet, rates below 25-35% on estates of over $2-$3 million are not right for the vast majority of Americans either. I would also like to see a permanent fix on the AMT so that the issue does not tie-up Congress every year too.
I could see extending unemployment benefits in areas still above the national unemployment average but the payroll tax holiday has to end in-order for Social Security to regain some of its financial footing, and I am also quite in-favor of substantially raising the income ceiling subject to Social Security taxation too. There is no good reason that high-earners should be exempt from Social Security taxation. I could also see extending the R & D credit, on the theory that it might help boost the economy too.
On the subject of the automatic spending cuts, remember that we have already lost a couple of rungs on the credit rating ladder, and any attempt to substantially reduce the impact of these cuts could backfire if we lose additional rating steps thereby triggering higher interest rates. Cuts made from defense would have a much-greater impact on civilian economic growth too, say at 2.5 to 1, so lost defense jobs would be replaced by 250% greater civilian employment. Since the ACA is the "law of the land", it makes sense for those taxes to go into-effect too, as the full provisions of the ACA will be enacted in just another 416 days and with a divided Congress substantial changes are unlikely too.
I'm afraid that America is at that point where spending must be cut and our deficits reduced or we are going to lose what credit standing that we have, which would be ruinous for all of us except banks as adjustable interest rates spike, which would make the cost of financing our national debt much more-expensive thereby automatically forcing even greater spending cuts, as credit card and ARM defaults also spike, and bankruptcies too, and then we are right back into recession, one that could end-up much worse than the last one too,
I might like to see a separate fix on the estate tax, as I would consider a return to the rates in-effect in 2001 onerous, and yet, rates below 25-35% on estates of over $2-$3 million are not right for the vast majority of Americans either. I would also like to see a permanent fix on the AMT so that the issue does not tie-up Congress every year too.
I could see extending unemployment benefits in areas still above the national unemployment average but the payroll tax holiday has to end in-order for Social Security to regain some of its financial footing, and I am also quite in-favor of substantially raising the income ceiling subject to Social Security taxation too. There is no good reason that high-earners should be exempt from Social Security taxation. I could also see extending the R & D credit, on the theory that it might help boost the economy too.
On the subject of the automatic spending cuts, remember that we have already lost a couple of rungs on the credit rating ladder, and any attempt to substantially reduce the impact of these cuts could backfire if we lose additional rating steps thereby triggering higher interest rates. Cuts made from defense would have a much-greater impact on civilian economic growth too, say at 2.5 to 1, so lost defense jobs would be replaced by 250% greater civilian employment. Since the ACA is the "law of the land", it makes sense for those taxes to go into-effect too, as the full provisions of the ACA will be enacted in just another 416 days and with a divided Congress substantial changes are unlikely too.
I'm afraid that America is at that point where spending must be cut and our deficits reduced or we are going to lose what credit standing that we have, which would be ruinous for all of us except banks as adjustable interest rates spike, which would make the cost of financing our national debt much more-expensive thereby automatically forcing even greater spending cuts, as credit card and ARM defaults also spike, and bankruptcies too, and then we are right back into recession, one that could end-up much worse than the last one too,
Nov 9, 2012 2:08PM
Nov 9, 2012 2:08PM
Nov 9, 2012 2:07PM
Nov 9, 2012 2:07PM
Nov 9, 2012 2:07PM
The Fiscal Cliff................This is what we will get because....... the folks that want a free ride, gay / lesbians and illegal aliens .............voted in Obama.
Face it people, we are screwed. The idiot that blamed the mess on the porevious admnistration was re-elected. It will be interesting how he blames this term failures on. Will he blame the previous 4 years? Oh well this is the spineless socialist MSNBC promoted
Nov 9, 2012 2:07PM
Adopt a flat tax so everyone pay's their share and slash the federal government by 50%. Any person that does not agree with this should be considered a traitor to this country and dealt with accordingly. It is we, the people, that make this country great. Our elected officials have chosen to ignore this fact because greed and avarice have taken control of their common sense and sense of decency. This country and its citizens are headed toward an explosive confrontation with our government unless steps are taken to rectify the injustices inflicted upon the American people!
Nov 9, 2012 2:06PM
We had to deal with Bush destroying the country for 8 years and we sat there with our big boy pants on and looked at him do it and didn't say anything. Republican party is dead. They have lost touch with the american people. All they care about is the wealthy and the american people are sick of it. Go back to the drawing board, come up with a different way of stragedy and try again in 4 years. Another thing people are always saying "government needs to get out the way" but the GOP party is always in people's lives. They have an opinion about people's choice of abortion, and who they want to be with, and even baseball, but when it comes down to fixing the country all they can do is be stubborn and point fingers. Work with the president to get this country back on pace, instead of fighting everything.
Nov 9, 2012 2:06PM
Why is Government spending not held to the same standard of accounting practices of virtually all private spending? The IRS scrutinizes all citizens money trails? All Companies and Corporations, regardless of their size are required to be audited and submit detailed reports to the Government inspectors? If these same standards were applied to Government spending, the voting public, both conservative and liberal would be up in arms. We could see which Politicians are selling his/her votes and who is buying their votes. Which regional projects are wasting money to line supporter’s pockets. Where all the TARP (et-all)… money has gone and who benefited from it. Maybe if the Government had been held to the same standards for the last 20 years the private sector is held to, there would not be this monstrous financial failure at the hands of the Government?
Nov 9, 2012 2:05PM
How am I supposed to interpret those charts? He states it as those values are how much the government will have to SPEND to AVOID THE FISCAL CLIFF. Inversely, does that mean that's how much the government with SAVE if we hit the fiscal cliff and enact all of it's cost cutting measures? I think that's a clearer way of stating it. Fiscal cliff = $1.2 trillion reduction in govt spending.
I think the point that is not made is that one theory is that if the government spends $8.1 trillion over 10 years, it's supposed to boost the economy and increase the revenue by more than that so that it all adds up to a net gain. Of course, this is a basic assumption that even economist don't agree on.
Without that assumption, I think it would be a pretty easy decision. If you want to reduce the deficit, don't spend that $8.1 trillion over 10 years.
I think the point that is not made is that one theory is that if the government spends $8.1 trillion over 10 years, it's supposed to boost the economy and increase the revenue by more than that so that it all adds up to a net gain. Of course, this is a basic assumption that even economist don't agree on.
Without that assumption, I think it would be a pretty easy decision. If you want to reduce the deficit, don't spend that $8.1 trillion over 10 years.
Nov 9, 2012 2:05PM
Great! !! Where was the news media with the information before the election. There is no more true or real reporting anymore. Everyone has an agenda and it is not reporting for the public. Thisi misinformation is worst than no information at all. You might as well pack it all in, thee is no more trust!!!!
Nov 9, 2012 2:04PM
Nov 9, 2012 2:03PM
Lets see if I can get this right. If Mittens was elected we would not be facing this fiscal cliff? President Obama had total control over the debt and could have stopped this from occuring at any point in the previous four years? George Bush institued tax cuts that have been continued. In the process the countrys debt has increased on top of paying for the Bush-Cheny war machine? Noone in Congress or the House of Represenatives signed or agreed to the auto bail out, or the Bail Out of Wall Street?. Obama did that all on his own? Noone had proposed or even authored the legislation for the bail out until the day Obama first walked into the White House? Noone approved Obamacare or had the opportunity to amend the proposals. Just checking. It's nice to know that the idiots in the Congress and the House of Represenatives have no responsibility in the State of our Finances.
Nov 9, 2012 2:03PM
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