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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1894Comments
Dec 7, 2012 4:20PM
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End unemployment for people being lazy.
Dec 7, 2012 4:20PM
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We need to stop with who's to blame. The real problem is NO ONE on either side of the Isle can get past their own agenda. None of these politicians have any idea what it is like to struggle and they never will. If we as a whole don't come together soon, and stop listening to the bull coming out of their mouths we will all pay. You need to get one thing straight. Politicians (ALL OF THEM) only care about 1 thing. THEMSELVES. There is a fix to this mess. We just have to come together as a cohesive unit. This should never be Republican this Democrat that. "We the People". Remember that?

Dec 7, 2012 4:20PM
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Why should we pay the government more money because they are mismanaged?? To me, if a goverment wants to make more money, that government should be more focused on job growth and the economy. More jobs = more taxes. Higher wages = more taxes. More jobs and or higher wages = more consumer purchases = more taxes. There yah have it, more taxes without increasing taxes.

Dec 7, 2012 4:20PM
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Please someone figure what everyones taxes would be if everyone paid and even 10%.  No write offs no nothing,  just a flat 10% for EVERYONE.

 

Dec 7, 2012 4:19PM
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A lot good it does to contact anyone in the house or senate they don't have time to return you email or look at them. This is the fault of Corporation America wanting to take over everything when they cant even manage them selves. The Gov't needs to clean up their act with wasteful spending ways. Example the Federal Reserve can't account for 7 trillion dollars. Where did it go?? And you don't hear anyone talking about it either it was lost during the Bush era.The Gov't is sending out messages of uncertainty with the economony because the two parties are dysfunctional. If i ran a business like the Gov't runs the country i would be out of business in a week. My pledge is to the United States and not any party like some we know of. POWER TO THE PEOPLE.
Dec 7, 2012 4:19PM
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Sure is funny that you don't see any of the sheeple who voted for Obummer making any comments on the fiscal cliff. LOL
Dec 7, 2012 4:19PM
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The poor rich are fearmongering yet again. Poor lil rich bois and girls...just can't, can't, can't live on a paltry $250K a year. Oh no? Watch them.

 

Now ...You want to know how utterly stupid these poor rich are? The more money they take in taxes from the Middle Class, the more it's going to cost the upper incomes...why? Because the Middle Class will be eligible for many more offsets that only the poor rich get now.

 

Note in the chart above that those earning $560K a year and over are ONLY going to pay an additional $120,000. This? This is what they are bitching their asses off over? These loonies spend more than $120,000 a day on gas to fill up their private jets. But let's all fall for their sob stories.

 

All while they continue to sap OUR tax dollars in subsidies that make their businesses so profitable. Biting the hand that feeds them? You bet.  But after all, we can't have our poor rich losing $120K now, can we? Why heavens to Mergatroid....those poor lil rich bois just lost tons on Rip Van Romo's campaign and Worry Free Wall Street that was a guarantee with Rip Van Romo's presidency is now just a gleam in their money managers' eyes. Don't you all just want to cry a river of tears?

Dec 7, 2012 4:18PM
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you know obama is not serious about making a deal when he threw in that congress did not have to approve debt ceilings........ he might just as well threw in "president is now a dictator" same impact.
Dec 7, 2012 4:18PM
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I support a flat tax for sure,but lets look at what we will pay,say if the rate is a flat  15%, and I will assume there will not be a Fed. tax on food and essentials.

 

New car  @ $28,000.00      Fed Tax of  $4200.00 plus your state tax. lets say 6%.   $1680.00

Now add your daily purchases.  Go ahead and add it up !   We can't afford it folks.It's as simple as that.

I would be in favor of abolishing the income tax for individuals, but keep the tax code for businesses.

 

THis government must face the facts,and reduce wastefull spending. Comrad Obama would have us believe that raising tax's on the 1 or 2% will help reduce the deficit. THat of course is utter nonsence,and a blatant lie !!!!!  Something he is very good at.

 

 

 


 

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Dec 7, 2012 4:18PM
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The way I see it is that Obama is flexing his political clout and the GOP is doiing all it can to increase its credibility with its base.  Probably the best way to handle this situation is to let Obama have everything he wants.  If his programs work, fine.  And if they don't and the economy tanks as I believe it will, its all on his and his party's shoulders.  Should that happen, maybe then the liberal entitlement society will wake up and smell the roses.
Dec 7, 2012 4:18PM
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We all need to pay more.  Nobody wants to pay taxes, but we still want the fruit of what our taxes provide.  Our gov isn't perfect, but it's the best in the world.  Pay the tax.  Be a real American and stop tying to be a dead beat.  
Dec 7, 2012 4:18PM
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Cheer up maybe we won't be around after December 21st so you all won't have anything to worry about anymore. LOL
Dec 7, 2012 4:18PM
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we do not have a taxing problem we have a taxing spending problem... 

 

time to cut spending and balance the budget,  it makes sense.

 

our congress has caused the problem and we need to fix it... vote them out

or talk some sense into them.  their spending spree must stop.....

Dec 7, 2012 4:18PM
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Our Congress is a failure.They need to step aside willingly or be forced out.Im sick and tired of hearing about how the Republicans wont work with the Democrates and Democrates wont work with Republicans.WE ARE AMERICANS above everything else.Im tired of be a casualty of their war on each other!!!

Dec 7, 2012 4:17PM
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Obama doesn't want this resolved. He is still out there 'campaigning' and complaining about Republicans being the problem. The Democrates are the problem here ....Dirtbag Reid won't even bring Obama's plan to the floor because the Democrates don't even like it but they all keep blaming the Republicans.  Obama's goal is to go off the Fiscal Cliff, blame the Republicans somemore, so in the next election people will vote out their Republican representitives and give Obama both houses and two years remaining in his term to finish the job he started.  And that is to fundamentally transform America into his Socialist Utopia.  Bye Bye America.  Hello Greece. The stupid, oblivious, obtuse liberal American voters have won.
Dec 7, 2012 4:17PM
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and still people blame the Bush administration for causing a recession... OBAMA IS ABOUT TO DO THE SAME THING!!  IT IS NOT FAIR FOR PEOPLE WHO WORK HARD AND DON'T HAVE 50 KIDS BY 50 DIFFERENT GUYS AND MOOCH OFF OF WELFARE TO HAVE TO PAY FOR THE LAZINESS OF OTHERS! IF YOU HAVE NOTHING WRONG WITH YOU, GET OUT AND GET A JOB... YOU MAY NOT CAN GET ALL THE FANCY CARS AND PHONES AND TVS AND IPADS AND ALL BUT AL LEAST YOU'D BE CONTRIBUTING TO SOCIETY! It really upsets me because by the way things look I will never be able to accomplish my dreams of becoming a music/drama teacher and be able to get married to the best man in the world.... What kind of world will there be left for the next generation....
Dec 7, 2012 4:17PM
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Get ready, hold on, we are going over the cliff! Watch your retirement account take another plunge. You may never get to retire. Raise the social security age. They are banking on the fact that you will probably die before you can collect. They talk about closing loopholes. Why havent they already done this. Cut the fat out of government. This should have been done long ago. Take away all benefits from congress. Maybe then they will listen.

Dec 7, 2012 4:16PM
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I am going to ask EVERY single person who complains about taxes, etc. who they voted for.

If the answer is "Obama", then they brought this on themselves with their own stupidity!

Dec 7, 2012 4:16PM
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Some of your responses make me feel like you just hate President Obama, so be it, but he didn't pile up all this debt. This debt has come from many years of overspending by a lot of different presidents and congresses.

We have just put two wars against terrorism on credit and bailed out the U.S. economic banking and housing systems and automobile industries. So, stop your whining this is not gonna get any easier as we go forward. The freedoms and benefits we enjoy do not come cheap or free.

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