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.
More from MSN
Your not the only one who has worked there **** off for what little you might have.
But I ask you. Way aren't you pissed that the super rich has been eating your lunch all along and you haven't complained one time about this?
Why is it your complaining about helping some of the people, when the rich doesn't want to give one bit of there millions of income toward paying there share?
Its about time you learn what's really going on here, your not the only one who would like to keep all the money they make, but the very well off get all kinds of tax breaks and if that doesn't work they send there money over seas, maybe if you don't like what's happening with your money, you should start investing in the Cayman Islands..
Nice fear tactics. We all need to pay more. But you Rich a-holes are not going to be creating jobs overseas with your tax saving. Oh, by the way turnips can be bled.
Obama needs to come up with a budget that has no spending increases & no tax increases to show the electorate that he's serious about solving the federal deficit. He has no business allowing tax cuts to expire, increasing the amount of taxes Americans pay, after he has taken us to this fiscal cliff. And shame on the elected officials who refused to work together to come up woith budget cuts to decrease spending!
Ibelieve should elimate all homeowner taxes and install a 9% sales taxacross the board for everyone. This tax should beon everything but food shopping. This way all these people who live with Access and other programs can start paying there fair share.
Didn't anyone pay attention to the fact that starting Jan 1 the bank will charge a 1% fee for every transaction that goes through the bank? That means that when your paycheck gets deposited, one percent will automatically be taken to pay the debt. Every bill that you pay, take an additional one percent from your balance. How are people on social security going to make it?
Once again we are on the short end of politics. Can the Justice Department on behalf of the American People take President Obama and the congressman who ran on saying that they would not raise our taxes to court and then throw them in jail! Why not, they do it for the ordinary citizen who gets caught lying.
Copyright © 2014 Microsoft. All rights reserved.
More Market News
These hot movers could rise by double digits in coming months.
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'