Tuesday, October 2, 2012

Need a breakdown of what the "Fiscal Cliff" is all about? I always like to know what I am "falling into". How about you?

We have all heard the term "Fiscal Cliff" (assuming you pay some attention to current events) and have some idea what it is about and that it appears to be a bad thing. 

BUT what are the details?

This report by The Tax Policy Center is as good an explanation as I have seen,in the simplest possible terms (with NICELY organized and presented charts!!!), of the issues on the Federal taxation side. 

It does NOT address the spending cuts that are part of the "Fiscal Cliff".

I especially like the detailed breakdown as to how the different income groups may be affected by the expiration of MANY different tax breaks/cuts and the implementation of NEW taxes scheduled to take effect in 2013.

ENJOY!!

3 comments:

  1. What is your take on a "Fair-Tax?" I was thinking that by exempting food and clothing under a certain price (socks and underwear are the economic terms I believe), a fair tax system would be more useful than the progressive tax system we currently employ. I need to do more research on this.

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    1. http://www.bbc.co.uk/news/world-us-canada-19809656
      This is a good link explaining the fiscal cliff too.

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    2. This one graphic ( http://haywardeconblog.blogspot.com/2012/08/federal-budget-spending-in-stacks-of.html )of what I call the "3 Towers of the Apocalypse" represents the real fiscal cliff that I am not sure is adequately being addressed (if it can be at all). The smaller "boutiques" in the budget that surround the Towers are a distraction for me. Worrying about the small potatos when the whole field is drying up!!!

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