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3 Bumps

What is the fiscal cliff?

keep hearing about it?

Answer Question
 
staciandababy

Asked by staciandababy at 1:13 AM on Dec. 10, 2012 in Politics & Current Events

Level 38 (100,930 Credits)
Answers (8)
  • The deadline on tax cuts and other budget arrangements. If they aren't renewed or a new agreement is met, taxes will go back to what they were originally and people will have to adjust to paying what they did before the cuts went in.
    NotPanicking

    Answer by NotPanicking at 1:37 AM on Dec. 10, 2012

  • As well as taxes going up, there will be spending cuts, specifically large cuts to defense spending.
    QuinnMae

    Answer by QuinnMae at 1:42 AM on Dec. 10, 2012

  • Congress came up with this when they were debating on the debt ceiling. They thought this dead line of Dec 31 2012 would force them to come to an agreement. If no agreement is made taxes will increase for 90% of us and 109 billion will be cut from the federal budget.

    mommom2000

    Answer by mommom2000 at 8:41 AM on Dec. 10, 2012

  • Congress agreed because they thought Obama would lose the election.
    Rnurse

    Answer by Rnurse at 10:47 AM on Dec. 10, 2012

  • They need to stop playing chicken with each other and learn how to compromise and work things out. Forget this "That's not on the table" attitude. Both sides want way to much and not willing to give an inch.
    baconbits

    Answer by baconbits at 11:45 AM on Dec. 10, 2012

  • Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. Over 1,000 government programs - including the defense budget and Medicare are in line for "deep, automatic cuts."
    booklover545

    Answer by booklover545 at 11:55 AM on Dec. 10, 2012

  • This all sounds terrible!
    staciandababy

    Comment by staciandababy (original poster) at 1:14 PM on Dec. 10, 2012

  • “Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

    Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President Obama’s health care law. At the same time, the spending cuts agreed upon as part of the debt ceiling deal of 2011 will begin to go into effect. According to Barron's, over 1,000 government programs - including the defense budget and Medicare are in line for "deep, automatic cuts."
    GlitteribonMom

    Answer by GlitteribonMom at 4:16 PM on Dec. 11, 2012

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