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1 day ago · McKenzie presented slides showing that in fiscal year 2022, the most recent with data available from the Department of Elementary and Secondary Education, the per-pupil spending in Hadley schools ...
- Tax Increases
- Spending Cuts
- Impact If The Country Had Fallen Off The Cliff
- Impact of Uncertainty Over Cliff
- Causes
- Resolution
- What Made The Solution Possible
- What Should Have Happened
The five tax increases were the December 31, 2012 expiration of three tax cuts and a tax credit. The renewal of those taxes would occur on January 1, 2013, the same day a new tax would begin. First was the expiration of the Bush tax cuts. The end of the Economic Growth and Tax Relief Reconciliation Act would have returned income taxes to Clinton-er...
The two spending cuts were the expiration of the extended unemployment benefits and sequestration. The sequester would have cut 10 percent on average out of the federal budget.
If the fiscal cliff had occurred, it would have thrown the economy into recession. Two-thirds of the $607 billion projected loss due to the following tax increases. 1. Expiration of Bush and ARRA tax cuts - $229 billion. 2. Expiration of payroll tax holiday - $95 billion. 3. Expiration of partial expenditure of investment properties - $65 billion. ...
Congress didn't take action on preventing the cliff until the last minute. The uncertainty began slowing economic growth in May 2012. Businesses and investors knew Congress wouldn't take action until after the 2012 presidential election. The two candidates held widely different philosophies on the best way to reduce the debt. Democratic incumbent P...
A failure of fiscal policy caused the fiscal cliff. The seeds were sown in the 2010 midterm elections when Tea Party Republicans gained control of the House of Representatives. They had campaigned on the deficit and debtreduction. They insisted on spending cuts, not tax increases. President Obama and a Democrat-controlled Senate wanted to end the t...
On New Year's Day 2013, the House of Representatives approved a Senate bill that averted the fiscal cliff. Republicans were unhappy that there weren't more spending cuts. The new bill contained the following six elements: 1. The Bush tax cuts remained on incomes below a threshold. This threshold was $400,000 for individuals and $450,000 for married...
The country actually fell off the fiscal cliff for barely 24 hours. Since all Bush tax cuts expired, tea party Republicans technically couldn't be accused of raising taxes. Instead, they reinstated the tax cuts for incomes at $400,000 or less. They then instituted a smaller tax cut for incomes above that amount. Congress wanted to vote on the measu...
The greatest irony about the fiscal cliff crisis was that it was all self-imposed. Perhaps Congress didn't understand economics. True, the U.S. debt-to-GDP ratiowas more than 100 percent, an unsustainable level. But for an economy as strong as the United States, it wasn't an immediate threat. In fact, investors were more than happy to keep buying U...
- Kimberly Amadeo
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Nov 19, 2012 · That’s why the American Action Forum just released an e-book “The Fiscal Cliff: What You Need to Know and How to Avoid It” with key facts & figures, relevant background, and easily digestible studies explaining what the fiscal cliff is and what damage it would do to the American economy.
Nov 27, 2012 · Tue 27 Nov 2012 11.37 EST. So let's start at the beginning: what is the fiscal cliff? It's not one cliff, but two things: a group of spending cuts and tax hikes that will come into effect on...
The term “fiscal cliff” comes from testimony Fed Chairman Ben Bernanke delivered before Congress earlier this year. But, as we mentioned, the "cliff" imagery has sparked some dissent.
Nov 9, 2012 · "Cliff" is an imperfect analogy. It's really more a long, rolling hill. A fiscal slope. In January, family income won't plunge into the watery depths and government spending won't collapse....
Nov 28, 2012 · Photo by Win McNamee/Getty Images. Behind closed doors, the talks continue. But negotiations between White House officials and congressional leaders on the so-called “fiscal cliff” seem to be...