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
Currently, at least 65% of legal immigration is by family sponsored(1.2 million+ each year). There is no limitation on citizen's parent immigration. After 5 years, most parents are legal to apply medicaid, SSI, and house assistant or nursing home.
The monthly cost from our tax money:
SSI: $700 +
House assistant: $800 +
Medicaid: $500 +
Nursing home: $5000 +
In 20 years (age 65 to 85), that can easily cost 1 million dollars of our tax money per person.
The problem is: the sponsor party may be rich and put the responsibility to our tax payer. Most of our retired workers can not have nursing home benefit from Medicare. It is not fare.
Solution: If an immigrant apply for welfare, his/her sponsor's income and networth should be counted until he/she earned at least 40 social security points.
How can you cut the Social Security payroll tax by $115 billion and not change benefits?
The 2% payroll tax was never even asked for by taxpayers.
Simple math eludes these people.
Raise the payroll tax back up to where is supports SS if it is so important to the american people.
I didn't know war was this expensive.
I remember when they changed from physical food stamps to food stamp debit cards. People paying in a grocery store with physical food stamps got a lot of ill will from other shoppers paying with money they worked for. With the food stamp debit card, the other shoppers didn't know.
Still, I miss the physical food stamps because people would sell them to you in the supermarket parking lot for 50 cents on the dollar. Now it's more difficult. They have to use the food stamp debit card to buy steaks, then they sell you the steaks in the parking lot for 50 cents on the dollar.
Wow! Not only do I make less money now than before, but now I get to look forward to giving the government an EXTRA $2,000 that I DON'T HAVE! I'm so sick of having to pay more while I watch our governemnt overspend on STUPID projects and fight amongst themselves like little babies. I have a family to take care of and cannot continue having to clean up after our government.
Congratulations to all of you Obama voters . . . he's called 'The Bomb" for a reason! All of you who voted for him just set hard-working families back even more. I suspect more people on welfare after this. But, hey, maybe that's the way to go. Keep giving handouts to people who don't want to work and keep having babies. That's the answer!
Now if we just raise taxes on those making over 250k as Obama would like that would create 52 billion in revenue this year, so that means we would still need to have about 950 billion in cuts somewhere.
Let the fiscal cliff happen, let taxes go up and we cut and we get a balanced budget and start getting out of the red.
Do we want a little growing pains now or a lot in about 15 years when the US becomes the next Greece.
I'm not a Harvard Economist, but when I read the comments here, it makes me wonder if most of the people posting even read the paper or understand the tax proposals!
A tax cut that Bush put into place is set to expire. If it expires, the chart above shows what will happen. I'm not sure why most comments blame Obama for that....
Obama is trying to push through a compromise that will have some people paying more taxes. Some just a little more; some a fair amount more. However...
Most Republican Senators / Representatives won't support his plan because it has the highest top 5% (those earning over $250) paying more than they think is fair. The top 1% would pay the most (those in excess of $500K a year). The majority of people would pay nothing more, so thank the Republicans who won't compromise for the increases on the chart above.
I am 67 yearss of age. worked all my life. Could not save then, cannot save now.
It does not matter who the president is. He/she would still have to roll with the flow.
If the government thinks they can get more money from me, they are sadly mistaken.
I am no longer going to file taxes - Fed or State.
I am hereby claiming exempt status from our government laws, rules & regs.
FBI, CIA, COME AND GET ME.
I thought this country was founded because of high taxes and other reasons. The taxes are getting way out of hand and need to be stopped.
How about a pay reduction for ALL Government officials to start? It used to be a PRIVILEGE to serve in Government, it wasn't all about money like it is now. There really are some ridicules salaries out there.
Trim the staff is another example
And how about the President cut out all the vacations the First Family take. They have had more vacation time to places I'll never get to see. They have taken more trips in 4 years than I have in 45.
A lot of the problem is the high salaries that are paid for the people who do the least. The lawyers and politicians are the ones making all the money, why else would they be there?
Ok this is a load of horse poop!!! The United States Congress voted to steal from our Social Security not once but twice. That was done with no thought of what the Constitution of the united states says, go figure??? I am so tired of our government changing the conststution to fit what they think it should mean!! We need a man or woman that stands for We The People not sor what they think is best for us. They work for us not the other way around.
I'm not for laying it all on the rich, nor am I for ANY tax increases for the low 40%, nor do I think that the middle class should escape completely. I'd say that the tax burden should remain the same for the low 40% and that that the responsibility to make up that difference should be transferred to the wealthy. After all, if you look at the numbers, it is obvious that the rich are not paying their fair share.
While we're at it..... Why not look at a federal sales tax on all goods and services with NO exemptions INSTEAD of an income tax. In this manner everyone would be taxed according to how well they live. If a billionaire wants to live like a pauper, then he won't pay much tax. Anybody know a billionaire who lives like that? Neither do I. But right now there are plenty of them who pay almost no tax at all. NOT RIGHT!!! The sales tax....with NO exemptiions... is the fairest possible way to tax.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
More Market News
The Federal Reserve and Congressional politics threaten to rain on the market party.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
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'