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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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.
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?
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.
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.....
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!!!
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.
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!
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.
Sorry but each and everyone of you that point fingers at any political party are too stupid to breath.
The problem is the 100+ years of all politicians promising rewards (kick backs, entitlement programs, special treatment, etc) and NO ONE stopping them. Almost all politicians do it because that is what is expected when you get into office. Now we are stuck with the bills from all of the promises made by politicans. We will never be able to tax our way out of this and I don't know if we can grow the economy enough to get out of this either. The hardest decision that will need to be made is to tell everyone: "I am sorry but you were lied to by previous politicians and we simply can't afford to give you what you were told you would get." The problem is the spending, not the taxes, and not the economic growth.
FACT CHECK for everyone! See how much money all of the large corporations donate to the replublican and demoncrat parties and you find that BIG BUSINESS and the ULTRA WEALTHY donate to both sides "just in case". How do you think politicians retire as multi-millionaires? (Another thing you can look up)
So why do the voters fight as much as they do? Because that is the easiest way to control people. If a politician makes them mad/upset about an issue and then points to another person and states "they think you are wrong" then that politician doesn't need to worry about those voters watching what they doing. Those two voters will fight with each other and not pay attention to what is happening around them.
SPOILER ALERT, just like "professional wrestling", politics is fake. The joke is on us because both parties cooperate with each other enough to keep everyone cheering for their "hero" and booing the "bad" guy. As long as they can do that then they get paid...
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