The fiscal cliff and you
Here's a quick way to understand the battle over the fiscal cliff.
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:The 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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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.
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.
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.
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"!
they should just postpone this cliff until the legal pot sales cover the government up with tax cash.
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.
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.
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A basic income policy can actually ensure a decent standard of living for everyone.
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