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
elimate all deductions, everything and charge a flat across the board 15% to everyone and all corporations on any profits made.. NO looppholes or gimmicks for anyone.. Make the tax code simple so one page will do it.
In addition to the Washington, D.C. office, Congressman Boehner has two 8th District offices easily located for constituents in Butler County and Miami County. You may contact us via phone, e-mail or fax. Due to security procedures, mail sent through the Post Office could take up to 3 weeks to arrive in the Washington, D.C. office.
|Butler County Office|
7969 Cincinnati-Dayton Road
West Chester, OH 45069
|Miami County Office |
12 South Plum Street
Troy, OH 45373
|Washington, D.C. Office|
1011 Longworth H.O.B.
Washington, DC 20515
(202) 225-0704 fax
Residents of the 8th District
of Ohio may use the toll-free number: (800) 582-1001
* If you do not live in the 8th District, visit for contact information.
Let the senate/congress get rid of some staffers who make huge salaries and also let other gov agencies cut the fat from their own staffers and operate within their budgets!
Now that would bring back a LOT of money!
Keep the taxes off of citizens
On the other hand, if you believe more taxes are the answer, you obviously also believe the gov doesn't spend too much. In that case, feel free to write them a check and leave the rest of us alone.
Copyright © 2014 Microsoft. All rights reserved.
[BRIEFING.COM] The S&P 500 trades lower by 0.2% with one hour remaining in the session. Quarterly earnings were in focus this morning and they will take center stage once again after the closing bell.
More than a hundred companies are expected to report their results this evening with a Dow Jones Transportation Average component-CH Robinson (CHRW 64.76, -0.85)-among the names on the schedule. In addition, investors will hear from American Express (AXP 91.85, -0.01), ... More
More Market News
In this economy, you'd think these retailers would be racking up the sales. That's not the case.
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'