The fiscal cliff and you

Here's a quick way to understand the battle over the fiscal cliff.

By Charley Blaine Dec 7, 2012 12:54PM

The fiscal cliff sounds like a nightmare. But it comes with real numbers that have real impacts on the lives of most Americans. Here's an in-depth look at them:Fiscal cliff/MSN graphicThe fiscal cliff started to affect business decisions this fall. That's why you saw small declines in manufacturing in Friday's jobs report, for example.

It appears to be a worry for consumers now. The University of Michigan's latest consumer sentiment survey shows confidence dropping to a four-month low. That suggests households are concerned about a potentially sharp fall in their after-tax incomes.

The CBO data suggests they might want to be concerned.

The CBO estimates suggest the 20% of households with the lowest incomes might see their taxes rise by $412.

If you're in the middle 20% of income levels -- between $39,791 and $64,484 -- the average increase would be $1,984. If you're in the top 20% -- $108,267 or above -- the CBO is estimating an average increase of $14,173.

If you're in the top 1% -- with income above $506,210 -- the average increase might be about $120,500.

 

The threat of the cliff is the result of Congress' inability in 2011 to come up with a package that would satisfy everyone. It came after threats of a government shutdown, a downgrade of U.S. debt by Standard & Poor's and a short, intense panic in financial markets that sent the major stock market averages down.

The provisions of the cliff were part of a deal made by Congress in an August 2011 budget bill. It set up a so-called Super Committee of members of Congress and the Senate who were supposed to hammer out $1.2 trillion in spending cuts over 10 years. If they couldn't come up with a plan, then a mandatory combination of spending cuts and tax increases would kick

The Super Committee couldn't agree on a plan, with Democrats and Republicans essentially deciding to wait until after the 2012 election to make decisions.

The CBO sees the cliff cutting the federal deficit but also causing a recession, just as the economy is gaining some strength, that might not end until the end of 2013.


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1892Comments
Dec 7, 2012 3:54PM
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I hope we go over servers us right for voting for the wrong candidates.
Dec 7, 2012 3:54PM
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Oh, americans who voted  for Obama you are going to suffer just like us now.

COULD YOU NOT SEE HE WAS LYING TO YOU LIKE HE DID 4 YEARS AGO.

WE HAD A CHANCE TO GET SOMEONE ELSE IN THERE, BUT YOU LET HIM GO.

Dec 7, 2012 3:54PM
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Hey, where's Feisty Redhead and all the other leftists on this comment post? Nothing to say libtards?

The statists' darling, our dear leader has publicly threatened [as has his henchman tax cheat Timmy Geitner] that they don't want a deal to be made. BoBo's got his $4m vacation in Hawaii to think about.

 

Fact is that we already went over the cliff. These articles are mainly sensationalism now. If a deal isn't cobbled together in the next 3 weeks it just means that we fall on another ledge on the way down. [Just envision Homer Simpson episode bumping every rock and tree branch all the way down to the bottom of the mountain. That's the good 'ol USof A thanks to 95% of the politicians in the last 60+ years]. Like any alcoholic or drug addict, only until we reach rock bottom with the ideological leftists come to understand we don't have any more money to pay for their nightmare ideas.

Dec 7, 2012 3:54PM
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We will go over the cliff.  Biden said during the election that he wanted everyones taxes to go up.  Everyone around him cheered.  Look it up on Youtube.

 

 

Not the $800 billion Obama states.  That is a lie!  1 trillion is what they want.  Go over the cliff and they get it.

Dec 7, 2012 3:52PM
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The govt has wasted enough of our money,to give them more????!! I don't think so
   All these countries that gets billions from us( so they will be our friends so to speak) take half of it back from everyone of them-----and that would be more than enough to fix our economy,,,
And even better stop giving any of them money and tell them all to stop fighting and start taking care of their own,,,we need to stay out of other people's affairs,,,, we have our own problems,
Our own govt is fighting over who is right instead of fixing the problem, who really cares if its the republicans or the democrats, that comes up with the solutions, both sides r acting like a----les,,,,
     Our founding fathers argued and fought and than came up with a solution for our govt, and it's laws,only to have these idiots in office now to tear it apart??? Their is not one sane or smart one among them, enough already---settle this before this country crashes for good!!!!!,
Dec 7, 2012 3:52PM
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have to support the lazy that wont work that put them back in

 

Dec 7, 2012 3:52PM
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what if things stay the same.whould you be happy them....
Dec 7, 2012 3:52PM
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I hate to admit it, but I think we almost need to go over the cliff. The people need to realize that you can not keep living off the credit card. Once the people have to face reality then maybe there will be a real push for change. Unfortunately our government doesn't know how to tighten its belt... something has to give... hopefully its not our back.
Dec 7, 2012 3:52PM
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How's that obama vote working for you now!
Dec 7, 2012 3:51PM
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It's very simple: the Republicans lost because they promised jobs to a country in which the majority don't wanna work!! they wanna ask for obama now to 'send em the bacon' (see:councilwoman from detroit video)
Dec 7, 2012 3:51PM
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At this rate my daughter who lives with us now to save money for a place of her and her family's will still live with us and won't save any money because the Government will be taking the little she could save.  If O'bama wants to see how the affect of this tax rate is going to affect real people I gladly will have him live in my house for a month.  We try and save for a rainy day and when that day comes we have to give our savings to the Gov. this really does stink!
Dec 7, 2012 3:51PM
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this GANGSTER GOVERNMENT  has no business "IN MY WALLET", IN MY BANK ACCOUNT, IN MY FINACES, IN MY HEALTH CARE, IN MY LIFE!

it along with all other forms of ORGANIZED CRIME such as the IRS/DOMESTIC TERRORIST ORGANIZATION, LIBERALS, UNIONS, DEMOCRATS ET AL NEED TO BE ABOLISHED!

 

Message to the  US GOVERNMENT  " GO TO HELL"!

Dec 7, 2012 3:51PM
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Does anyone remember "Taxation Without Representation"?  The reason the founders of this country came here?  Difference is now we have "Huge Taxation WITH Representation"?  Why not start with all the perks & benefits All the Politicians have....Health Insurance they dare not change to the likes of the rest of us....impose it on us, but they're too good for it.  How about they receive payment the REST of THEIR LIVES?  Who I ask WHO pays for that????? Only those of us that get up at the crack of dawn and work til the cows come home!!!!  We all need to March against them, against ALL OF THEM!!!! If any of them were convicted of being honest, you'd be convicting an innocent person!!!! 
Dec 7, 2012 3:50PM
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they should just postpone this cliff until the legal pot sales cover the government up with tax cash.

Dec 7, 2012 3:50PM
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Jeez there are a lot of Obama haters in this comment section. If you idiots read the article, you'd see that it was CONGRESS in 2011 that couldn't reach an agreement, so they just threw the last ditch effort they had left in the oven. Obama is the one who is trying to get them to reach better deal that won't raise taxes across the board. But hey...I get it. Obama is a black man so I guess its fair to berate him and blame all of YOUR problems on him. Racist pricks make me sick.

Dec 7, 2012 3:50PM
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The #1 job for the rich is to steal taxpayers dollars, (the biggest purse of money, and find loop holes to keep the wealth they already have), so taxes will always continue to go up, no matter how they sell it, so they can get more money.

Until, the balance of tax reforms occurr, freezing all raising taxes, and placing percentages of higher taxes on the rich and lower for the poor, to have stronger middle class.

That brings wealth for the entire country.

Dec 7, 2012 3:50PM
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If you had a household and you were spending $6,000/month but only earning $4,000/month what would you do?  I believe most prudent people would FIRST look to see where they can reduce their spending.  If this can't solve the problem in it's entirety, then a second job might be in order to raise some extra income.  To summarize, FIRST you cut spending..... then you look to raise income!  That is exactly what the Republican's want to do!  It's primarily a SPENDING problem not an income problem! Once we have our spending problem tackled, then we can look to ask people for some extra tax dollars.  Until then, tell the Dem's to eat cake! 
Dec 7, 2012 3:49PM
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Phuck the government ---they have been doing it to us to the tune of 16 trillion
Dec 7, 2012 3:49PM
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Why are defense cuts never on the table???  You want to talk about wasteful spending, there you go.   
Dec 7, 2012 3:49PM
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its about time the republican party started to think about the country and not about there rich friends that gave big donatios for there party in the election,its the same old system with there party the rich get ritcher and the rest get poorer,its about time there pay checks and there chrismas vaction was withheld until thet come to an agreement as most employees only get one day ,so rember you lost the election so get off your high horses and face reality   shame on the republican party  i was once a republican and voted so in the previos election.but not this time i voted for obama 
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