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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We heading to Socialism-Communism where the elite people in the government will have everything, but nobody else. Government will control us personally thru the full instalment of the Obamacare in the near future. People who oppose to to government (democrats) will be thrown down form their seat, so the party will take care of the empty seat to rule their will. Please everybody wake up from this somnolence state and fight back..Zimba
Well lookey lookey here! Alll that talk by Obama about taxing the rich is going to raise a whopping $52. But just as I knew, we're going to hunt down and tax the snot out of those making under $250K household income to make up the bulk of the tax increase revenue. And 52% of voters voted for Obama. Nice.
And another thing, if you DON"T PAY FEDERAL INCOME TAXES, you shouldn't get to vote in federal elections!!!!
The Replublican PUKES wont do anything but pass gas in washington unless its for their rich contributors who make over 500,000 per year.
They are to blame for TWO WARS, MILLIONS in AID to Foreign Governments whose citizens HATE the USA
IF WE CAN NOT TAKE CARE OF OUR FAMILY= AMERICANS AMERICANS AMERICANS AMERICANS WE THE PEOPLE DO NOT WANT TO TAKE CARE OF ANY FOREIGNERS,READ OUR LIPS OR YOUR FIRED
These debts and tax hikes are the results and consequences from the incompetent regime and leaders in office from January 20, 2001 – January 20, 2009, fighting the 41’st presidents lost battles. Guess who is paying his family’s war-bills now while laughing and counting their oily blood money over a Thanksgiving dinner together……
If Warren Buffet says that the way to recovery is to let the superrich (just like himself) pay at least as much as we do, 25-28% , well then that’s what we should do; but oh no, the Republicans want it to come from those who make less 100K with 2 - 3 kids and 4 jobs between 2 adults…
250 years ago there would have been a revolution, it is supposed to be a Government BY the people - FOR the people, not the people feeding already fat and rich politicians who are puppets by Wall Street.
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