Maybe I am not the sharpest, but I had honestly NEVER heard this term before September. Apparently, we are teetering on the edge of it, with a strong wind at our back. According to the intertubes, Bernanke, head of the US Federal Reserve, used the term to describe a "massive fiscal cliff of large spending cuts and tax increases" set to begin on January 1, 2013. In other words, we are jin for it if the parties don't suck it up and decide to play nicely with each other for the sake of, ummmm, their actual country.
The fiscal cliff, if left unchecked, will affect everyone. Rich, poor, those on unemployment, doctors who accept medicaid, air traffic controllers, R&D companies, pretty much everyone, will be affected. If left unchecked, the average middle-class family will pay about $2000 more in taxes a year. That will sting, no matter what side of the aisle you sit on.
I have had my head in the sand with this one lately but I ventured to the edge to peek last night and the ramifications of inaction will be astonishing and deep. Expiration of many tax cuts, some that Obama has extended from the Bush days. Spending cuts to most programs via the Budget Control Act of 2011, in remarkably vague wording that only clearly protects the DOD and Medicare. Highway funding, educational grants to states, spending on weapons programs, air traffic controllers- It will all be cut by eight percent. Doomsdayers say it will bring the slow climb out of the recession to a halt- some predict that it will take unemployment close to the double digits and that spending will come to a halt. We will feel the tax increases with any paycheck beginning on January 1, 2013.
Unless. Unless lawmakers from both sides come together to extend tax breaks, extend acts that protect us, and look at the other options that can bring us back from the edge. Unless lawmakers, who reconvene in a few days, do this hard work, we are all looking at immediate pains. I almost wish I had kept my head in the sand when I start to look at this stuff.
Fiscal Cliff- have you heard about it? Is it changing the way you think or spend or plan?
November 14, 2012 at 3:09 PM
I would like to stick my head back in the sand........
November 14, 2012 at 5:14 PMIts the result of not "dealing" with it last year. Some were even quoted as saying.g "leave it for the next congress"crazy people!
It will have to be dealt with and many are unhappy with both sides of congress. I am hopeful and believe they can come to some sort of understanding but I don't truely know what that will mean for everyone.
November 14, 2012 at 6:54 PM
Lawmakers coming together? Yeah. That'll happen. That actually makes me really frightened, money is already tight in our house, we can't afford more taxes.
by Babybear89November 14, 2012 at 10:27 PM
never heard of it before makes you think
by sarahjzNovember 15, 2012 at 12:17 AM
Ugh. It actually causes me a fair amount of anxiety. I wish I could bury my head in the sand....
by everydayjillNovember 15, 2012 at 12:37 AM
Funny how we are all talking about burying our heads in the sand...
by heydooneyNovember 17, 2012 at 10:27 AM
It's pretty scary :/
Hubby wants to get a gun, he predicts trouble.
by Virgo.MamaNovember 17, 2012 at 6:25 PM
by NighttigerNovember 17, 2012 at 10:28 PM
I've been watching it since last year. What most didn't realize going into the election was that both presidential candidates were planning to raise taxes on the middle and lower class. That tax break for the employee portion of the SSI tax was set to expire in January and neither candidate is/was planning to renew it. That means, no matter what, every one's (that isn't just investment income) taxes are going up across the board by 2%. The rest is fuzzy and I hope Congress can finally stop playing politics and actually GET TO WORK. We need a resolution and they need to stop making BS pacts like "no raising taxes no matter what". I will be curious to see what happens come January. No sand for me :)