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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My thought is that why even bother trying to fix the economy. It seems we just keep digging that hole deeper. So because the government didn't do their jobs. We all get to pay much higher taxes in 2013 - and it all starts on January 1. I now see more lay-offs and more economic problems ahead.
The increases and decreases are not extraordinary .You have 500 mil. in tax increases and 160 mil. in spending cuts. The debt burden is in the trillions and continuing to grow .This is not a cliff. Bring it on!
I am so tiered of the rich capital politics effecting what is right for all Americans, in this move towards fiscal equality. Why not tax the rich equally as the middle class? It will not hurt them, and their deep political pocket interest, stay out of the moral economic equality, and balance that’s right, and also effecting the separation of power and the votes of moral justice of economic prosperity. You have enough million dollar homes, BMV’s, diamond rings, and your rich little toys you spend millions on. The real fact is the middle class gets poorer, and the rich get richer off the backs of use at lower pay. Your profits will still be there, your nice comfortable lives will not be so affected, and its time you pay your share, and stay out of the politic. You influence media that you own, you affect pay to the workforce, to save your profit margin to dictate your tax right offs, you affect state, and federal interest with your political contributions, and to make things worse you outsource the high paying jobs overseas, and leave the scraps of lower paying jobs like retail in the US. Your arrogance even goes as far as saying you own the US and even the government. Enough is enough, and start doing more than what you think is ok. You may all kinds of reasons that you are giving your share but its more towards protecting your deep pockets, and wallets.
Progressives get the best of both worlds. They want to raise taxes on the middle class but don't want to take the blame. Their solution? Make NO deal and force us over the cliff. They get their taxes and republicans get blamed.
It's in democrats best interest to have as many poor as possible, yet people are surprised we have a record number below the poverty line under their leadership. DUH!
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