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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How sickening, we all work our butts off ( except those on welfare & free programs ) and this is what we get in return. What happened to no new taxes, we knew once Mr. President got back in office this would change and change for the worst. I still can't believe he has everyone convinced he is looking out for us. The goverment is wasteful, dishonest and they are the ones who need to be in our shoes. The rich politicans don't know what it is to struggle even when they retire they still will not miss a beat and their bank accounts will still be the same. We are the ones that always has to cut corners and struggle from day to day, I don't see anyone bailing me out of debt.we are in for a rough 4 years.
Frustrated Citizen
Frustrated Citizen
No more TAX PACKAGES there should be a line by line budget so the wheeling and dealing on the hill has to stop. " I will sign your tax program if you slip my pet project into the bill." I need to stop writing. I get on the subject of taxes and get crazy. My apologies to those that have read this far
i hope we go over the cliff. america voted for obama and it shows that the largest tax increase will be on the low and middle class. this is what the people wanted after all so i hope they get what they wanted by paying higher taxes.
these new taxes as well as the new taxes ferom obamacare will get this country back on the right track in a hurry and eliminate our deficit. obama says thats his goal right? so higher taxes is a goodt thing
I've worked my butt off all these years as many of you have while the 47% have a kid each year by a different Baby Daddy. These women claim they are single, but the Mr. is there with them every night. I just read a report that stated that welfare programs now pay out $30.00 per hour per person in entitlements for each $25.00 earned by bonafide wage earners.
They live better than most Americans and welfare programs and Medicade are not taxed. Would you go to work if you could live off the government? These people do not know how to work.
Elections have consequences. Beware of the "Devil Incarnate"!
President Obama makes his speeches sound like "taxing the rich" is a cure all, save all for making our deficit go away. The taxes on the "rich" in Obama's plan will raise $750 to $800 billion over 10 years or $75 to $80 billion a year. Our annual deficits now are about $1.1 TRILLION. $80 billion a year in new revenue is about 7% of the of our $1.1 TRILLION annual deficit. What the heck do we do to cut the other $1.04 TRILLION.
If very big changes are not put in place right now, in 4 or 5 years, we are looking at a $21 TRILLION national debt. Interest rates WILL JUMP to, lets say 4%. That means we will be paying about $840 billion annually IN AN INTEREST PAYMENT. That's about 1/3 of what we annually bring in. That will be the beginning of the end of America as we know it!
Our government have to stop giving help for those people who sat around and collect food stamp and other benefits. some of them abuses it. They have investigate first before helping them worked tons of extra hours to meet our needs no matter what because i don't want to depend on our government enough is enough!!!
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