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What is the fiscal cliff?
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.
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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What is a cliff?
a steep, high, wall of rock, earth, or ice.
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…g but try to hold on to a branch and the branch breaks either way they die whoever walks near cliffs they are dumb
Will the fiscal cliff affect military pay?
Military pay is exempt from the spending cuts included in the "fiscal cliff." Other major programs exempt include Social Security, Medicaid and veterans' benefits.
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…ts across the board. Economists predict that this may have a bad effect on the US economy. Actual effects will be slight for a few months, and Congress seems very likely to act quickly, if indeed the "cliff" is actually allowed to happen. Psychological effects, such at those on the stock market and on the thoughts of people who make financial decisions is hard to predict.
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…t of the Republican Party that cutting taxes would grow the economy (called by supporters "supply-side" and by opponents "trickle-down" economics). When the tax cuts were first enacted, the country was in the midst of a war, and critics noted it was highly unusual to cut taxes during war-time. Further, critics noted the tax cuts mainly helped the wealthy, and contributed to what became a growing budget deficit. But supporters said the tax cuts were necessary: they said the government took too much money from taxpayers, and Mr. Bush was providing them with tax relief. The tax cuts were set to expire in 2010, but they were renewed by Barack Obama as part of trying to negotiate a compromise with Republicans during budget talks in 2011. However, Mr. Obama believed then, and continued to believe during his 2012 campaign, that raising tax rates on the top 2% would bring in much needed revenue and not harm the economy at all. He noted that under Bill Clinton, the wealthy paid that slightly higher rate and the economy was booming. The president would like to continue tax cuts for the middle and working-class but end the tax breaks for the wealthy. Republicans, however, believe that nobody, even the top 2%, should have their taxes go up, so they have blocked any efforts on the part of the president to let the Bush tax cuts on the wealthiest Americans expire.
What is the definition of fiscal cliff?
the definition of fiscal cliff has to do with the taxes and now, in December of 2012, Obama said that the wealthy will pay more
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…ible return to the recession levels of 2008. In a layman language we can define Fiscal Cliff as a situation in which a particular set of financial factors cause or threaten sudden and severe economic decline.
What are Governor Chris Christy's views on the fiscal cliff?
We don't know specifically, but in New Jersey he did cut aid to education to preserve tax cuts for millionaires, so draw your own conclusions.
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 …by raising taxes or cutting government spending. At this point for the next two months the government has chose to raise taxes on the 2% that make 450,000 dollars a year.
Is the fiscal cliff over?
The fiscal cliff is temporay over for the next two months
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.
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In Barack Obama
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… on the 'Grand Bargain', emphasizing that he was re-elected on a campaign of raising taxes on the rich, after the Republicans tried to posture for a better deal. The Bush era tax cuts for individuals earning less than $400,000 and couples earning less than $450,000 were made permanent. The top tax bracket was re-instated at 39.6% as opposed to the 35% during the Bush era. The debt ceiling was raised by 2.1 trillion. The payroll tax deduction of 2011 was scrapped, with rates rising to 6.2% from 4.2% Itemized deductions were capped on high earners.
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Do you still get to claim your money for your dependent from the new 2013 fiscal cliff?
Yes. Although the final language is not yet available, there has been no information released to suggest that the rules governing the dependent deduction have been changed.
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In Barack Obama
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 …them. But newspaper reports tell a different story. According to various newspapers, President Obama has been meeting with certain key Republicans all along. It is difficult to say how many meetings were held, but they did occur, and there is documentation of that. On the other hand, during the Fiscal Cliff talks, there was a separate bipartisan committee meeting in the Senate, also trying to come up with a deal. And during the sequester talks, there is a similar process, where a group of senators are meeting, while President Obama has also held talks with Republican leaders. But that has not stopped certain Republican members from complaining there have not been enough meetings with the president. The Republicans object to the president holding what they say are "campaign style" events to rally public support to his plan for solving the fiscal crisis. This aspect of presidential politics is always annoying to the party that is not in power, and understandably so. But there is still considerable evidence that the president, in addition to holding political events, has also met with Republicans to discuss possible solutions.
Answered
What are the release dates for Fox Business - 2007 Fiscal Cliff and the Auto Industry?
Fox Business - 2007 Fiscal Cliff and the Auto Industry was released on: USA: 30 November 2012
Answered
What are the release dates for Robin and Company - 2005 Fiscal Cliff Vote?
Robin and Company - 2005 Fiscal Cliff Vote was released on: USA: 1 January 2013