THE FISCAL CLIFF AND WHAT IT MEANS FOR YOU
Why are we headed for the fiscal cliff?
The so-called “fiscal cliff” is the painful antidote for the failures so far of Congress and the White House to deal with the government’s spiraling debt and overhaul its tax code. The US government has run annual budget deficits in excess of $1 trillion in each of the last four fiscal years. A November report showed the government started the 2013 budget year with a $120 billion deficit in October, suggesting a fifth $1 trillion annual deficit is likely, according to the Associated Press.
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- Choose another
- What is the fiscal cliff?
- Why are we headed for the fiscal cliff?
- The Bush tax cuts would expire
- Middle-income family would see their taxes increase by $2,000
- The alternative minimum tax would be imposed on more Americans
- The payroll tax cut would expire
- Many tax credits would be eliminated
- Payments to Medicare providers would be reduced
- Social Security tax cuts would expire
- Defense funding would be slashed
- Funding for domestic programs would be cut
- Many US companies would put off hiring and spend less
- Jobless benefits for the longterm unemployed would be cut
- The unemployment rate would shoot up