The fiscal cliff

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Could someone give me a brief run down of the fiscal cliff I have seen a lot about it but purposely chose not to read anything about it. Has something to do with spending and reaching debt limit?
 
Matthew3590 said:
Could someone give me a brief run down of the fiscal cliff I have seen a lot about it but purposely chose not to read anything about it. Has something to do with spending and reaching debt limit?
Click to expand...

This explains it well.

http://en.wikipedia.org/wiki/United_States_fiscal_cliff

But a brief run down is an end to the Bush tax cuts for all incomes and spending cuts that will cut the federal deficit for 2013 in half. It will also cut the spending deficit by more then $7 trillion over the next 10 years. And may cause a mild short term recession.
 
Without doing the research, I don't believe that the deficit will be cut in half.

That said, I'll be paying an extra $3,500 to $4,000 at tax time this year as compared to last. I wouldn't mind paying it if I knew that meaningful cuts were going to be made. It's like giving extra money to an alcoholic cousin who you know is going to spend it on booze.

If you cut all discretionary spending, Dept of energy, all of defense, etc... and only had the mandatory spending, service to the debt, soc sec, and medicare, we'de still be running a deficit.
 
I do mind. With as much as we pay government spending is still an out-of-control bottomless pit that we can't account for. I live in Illinois and ven ewith as much as we pay, you can visit any state in any direction and immediately know you have crossed the state line by their better roads. That is pathetic.
 
bakerjw said:
Without doing the research, I don't believe that the deficit will be cut in half.

That said, I'll be paying an extra $3,500 to $4,000 at tax time this year as compared to last. I wouldn't mind paying it if I knew that meaningful cuts were going to be made. It's like giving extra money to an alcoholic cousin who you know is going to spend it on booze.

If you cut all discretionary spending, Dept of energy, all of defense, etc... and only had the mandatory spending, service to the debt, soc sec, and medicare, we'de still be running a deficit.
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Well the experts have done the research and say if they don't change the cliff then it will cut the deficit for next year in half.
CBO estimates that if the baseline scenario is allowed to take effect in 2013, it would reduce federal spending by $103 billion and increase tax revenues by $399 billion (and another $105 billion "mostly in revenue") through September 2013 (the end of FY2013). This would amount to a net total of $560 billion, roughly half the $1.2 trillion FY2011 deficit.[23] The White House estimates that a family of four with an income of $50,000 to $85,000 would pay an additional $2,200 in federal taxes.[25]

If you're paying $3,500 to $4,000 more in taxes this year then you must have made a lot more this year then in 2011.
Social security and Medicare don't add to the deficit at this time.
 
It is a political ploy to blame each other. Obama wants it so he can blame republicans and republicans want it to happen to blame Obama and the Dems.

They said on the news that a family with $50,000.00 will pay about $2500.00 more a year. I am self employed so it most likely will not effect me.
 

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