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
Nothing infuriates me more than seeing an individual come in to the bank that I work at and cash a tax refund check for $7-8K+ ...and they have not contributed to anything in taxes for the year. I wish someone could explain to me how you can be "refunded" more than you contributed. Think of how much would still remain in the coffers if that alone was reformed. You can't get back more than you put in....simple as that!
I think people should be embarrassed to be aligned with the Republican Party. Are the top 2% so powerful that they control one half of our complete democratic system? We should send John Daily in to referee. I think we're in trouble.
It's not that I don't want to help the helpless or less fortunate than me------------But I'll be damned if I want to
help the Clueless////// If you can walk and talk get a job and don't tell me there are none to be found/////////
Our small town has about 20,000 people living here and yesterday I went into 3 local stores with help
wanted signs in the window///////////There should be no signs in windows for more than 15 minutes//////
Get a job clueless and help out society/////////////////////
So, let me get this straight, if I make $108,266 I would pay $3,540 more , but if I make $108,267, just $1 more-- I will have to pay $14,173 more, over $1,000 more per month and 4x as much as the next lower bracket? We do not have that kind of money laying around...wait, we would if we didn't have to pay a $2,400 mortgage payment when my house is only worth $180,000 and I cannot refinance because I'm under water and I've owned since 2004, maybe we could! We live paycheck to paycheck like a lot of other people. I do not shop at expensive stores, I shop at Kohls and outlet stores, Walmart and Meijer for groceries, I cannot afford to shop at Jewel or Dominicks, I wait for sales and use coupons. If this happens, we will not have any extra money each month after bills. Such BS. Just because you make over $100,000 doesn't mean you're rich by any means. I live in a small 1,700 square foot home in a middle class neighborhood.
This is what we got out the last four years, now you give him another four years, to bankrupt America ! ! ! !
who the heck is doing the math here??
" $108,267 or above -- the CBO is estimating an average increase of $14,173" 13%????? if THAT is real its time to storm the castle and get out the tar and feathers
"I still don't understand why people voted for the incumbent president (can't force myself to say his name) knowing what he and Congress wanted to do to taxes --- and then compalin when their taxes go up!"
Your President dosnt want to raise taxes on the the middle class The republican party is holding the middle class hostage for unpopular spending cuts and increases. Trickel down economics dosnt work it is not 1986 and we now have a world economy. Unpopular things need to happen with our tax code, workers are taxed more then capital. The one percent that live on dividends pay 14% I pay 28% not fair and ballenced IMHO. Since we are now a consumer based economy we need a consumer based tax system that eliminates income and corporate tax system. If we continue with this system the ultra rich and big buisness will continue to shape our tax system for their benafit while the rest of the working middle pay for it. If the tax system stays the same we will all have to pay more taxes no matter who is in office it is our reality and our future. If congress continues to not perform they must go, they are elected to make decisions and compromise doing nothing and recieveing a check and life time benafits is unacceptible.
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.
[BRIEFING.COM] The stock market finished the Wednesday session on a modestly lower note, but it is worth mentioning today's retreat took place after six consecutive gains. The Dow Jones Industrial Average (-0.1%) and S&P 500 (-0.2%) settled not far below their flat lines, while the Nasdaq Composite (-0.8%) lagged throughout the session.
Equity indices started the day in the red, with the Nasdaq showing early weakness as large cap tech names and biotechnology weighed. The technology ... More
More Market News
Stocks are facing some serious resistance as the bears tear into the market's respite.
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'