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What is the fiscal cliff?

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The fiscal cliff is a term coined by Federal Reserve Chairman Ben Bernanke to describe a set of laws expiring December 31, 2012 that will result in major spending cuts and tax increases that will affect every American.

Among the laws set to expire are: payroll tax cuts and Bush era tax cuts for the wealthy. Simultaneously, spending will be cut across the board as part of the Budget Control Act of 2011.

This 19.63% increase in tax revenue and 0.25% reduction in spending in 2013 is projected to cut the US deficit by roughly half (about $600 billion). While that sounds good in theory, economists warn that it could have a negative effect on the economy in the short term.
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Where is a cliff?

A cliff is found where a flat piece of land suddenly ends and has branches attached to it many people fall off cliffs and try to hold on the edge and slip or they start fallin

What happens if the US goes over the 'fiscal cliff'?

If the US goes over the "fiscal cliff" on Dec. 31, our tax rate returns to what it was during the Clinton era. Our federal budget is automatically reduced by substantial amoun

What prompted the original and due to expire Bush tax cuts cited in the so-called fiscal cliff discussion?

Since President George W. Bush first instituted tax cuts in 2001 and 2003, this has been a very controversial part of economic policy. It was a strongly-held belief on the par

How many fiscal cliffs have there been in history?

None. It is only in recent history that this has happened. In the past there was compromise and it is only the newest group in the House that has made it an issue.

What does fiscal cliff mean?

This refers to the end of the tax cuts enacted during President  George HW Bush's administration. Thus, the cliff entails a sharp  increase in taxes on all levels and a poss

Why is there a fiscal cliff?

Their is a fiscal cliff because the government/America is 16 trillion dollars in dept and we need to figure out away to pay off the dept. The fiscal cliff will bring in money

Has the president already signed the fiscal cliff bill?

Yes, Obama signed the bill on Wednesday, Jan. 2, 2012, the day after it was passed.

Did Barack Obama do something about the fiscal cliff?

Yes. Congress eventually reached an agreement as to tax rate changes as well as different spending and revenue changes. Barack Obama gave several speeches as to his position

How many time has Obama met with Republicans on fiscal cliff and sequester?

First, it is very common political rhetoric for one side (in this case, Republicans) to go before the cameras and blame the other side, or to say the president never met with