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Are you prepared for the fiscal cliff? A guide to what it is and how it can affect you

Published: Thursday, Dec. 6 2012 6:36 a.m. MST

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A large series of tax cuts, breaks and benefits, including deductions for children, will expire on Jan. 1, which could hurt a weak economy.

As a result of the increased tax burden, which some congressional aides are calling “Taxmageddon,” means $500 billion in higher taxes in 2013, Curtis Dubay, a senior policy analyst for the Heritage Foundation, told CBN News...

Read the full story here .
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Econ101
Farmington, UT

It's a $500 million swing reports, not a $900 million swing. So $400 million growth would go to -$100 million, not -$500 million.

Moderate
Salt Lake City, UT

I've heard it is more accurate to describe this as a fiscal "curb", but "cliff" sells more newspapers.

I hate to sound like a conspiracy nut, but I imagine "the deal" is already done, and all we see now is the theatrics. Boehnner knew tax hikes would be in the deal; Obama knew that entitlement cuts would be in the deal. We will see a couple of carefully scripted moments of feigned outrage by both sides so that Boehner can appear to still be anti-tax hike and Obama can appear to have defended entitlements as best he could. But in the end, they will dust off the deal made at a White House beer garden summit in 2011... "if you win the election, this will be the deal. If Romney wins, this will be the deal."

worf
Mcallen, TX

An seventeen trillion dollar debt didn't just happen. It was planned.

generalM
Frannie, WY

Really? The Deseret News is using the Huffington Post as a reference on something as serious as the financial crisis caused by govermental overspending and ridiculous debt levels?

ExecutorIoh
West Jordan, UT

The government budget would be "slashed" by 109 billion dollars with this "fiscal cliff". More like shaved or slivered. The annual federal budget is about $3.8 trillion dollars or about $1.3 trillion more than they make. $109 billion is less than 3% on a budget that is 54% over budget. It is like having a monthly pay of $2000 but spending $3080 and "slashing" your spending by about $89 down to $2991. Something big needs to fix this problem of deficit spending and it needs to come with revenue and spending changes. People will get hurt along the way, but it will be much better than if we had to suddenly live within our means all in one big move; something the country needs to eventually do.

worf
Mcallen, TX

In school, students often were punished for what one, or two others did.

As a grownup, it's the same thing.

"Politicians Happen".

or

"Liberals Happen".

Moderate
Salt Lake City, UT

worf said "In school, students often were punished for what one, or two others did. As a grownup, it's the same thing. "Politicians Happen".

I absolutely agree with you worf. We are being punished (with high debt) for believing President Bush when he said the diversion into Iraq would pay for itself. Looking back, its sad we were so easily fooled.

IDSpud
Eagle, ID

Moderate. Oh how I wish we were only in debt equal to the cost of the Iraq war. This continual blame on Bush for all the current ills only reflects the dumbing down of the American eloctorate.

worf
Mcallen, TX

Moderate,

Sixty percent of our national debt has come in the passed three and a half years. If Obama gets his additional 1.6 trillion dollar deficit spending, it'll be around eighty percent in four years.

Hmmm? The weapons of mass destruction have just shown up in Syria, and Iraq is still being destroyed with terrorist bombings. Maybe George was right, and Barry wrong with ending things to quickly, and wasting money spent.

Why has our commander sent billions of dollars to Corsi?

CWEB
Orem, UT

Can't wait until all these self-serving politicians are put in their place...oh, it will come...after MUCH suffering on the part of the people!

Maybe a handful are worth saving in the end, they lying, cheating, secret works, they will all come forth in time.

DN Subscriber 2
SLC, UT

The fools in Congress and the White House simply ignore the fact that the root cause of their crisis is NOT a lack of taxes, but rather the incessant increases in spending.

Arguing about raising taxes is a deliberate distraction away from solving the problem by making tough, unpopular choices about reducing spending to levels we can afford.

They want to buy more buckets to bail out a sinking boat, but never want to plug the holes that are causing it to sink.

However, Congress has addressed the pressing issue of removing the term "lunatic" from federal laws, while ignoring, posturing or lying about the spending and tax issues.

Riverton Cougar
Riverton, UT

But I thought the economy was fixed! After all, Obama did say that if he didn't have it fixed, then he deserved to be a one-term president.

People who voted for Obama have no room to complain. This is what they voted for, and now we will all have to suffer the consequences. Polls showed that most people thought the economy was the number one issue, and most people believed that Romney would be better at handling the economy. So why did Obama win? I guess this is what most people want.

I'll tell you that I certainly didn't want this. It looks like we'll have to spend the next four years or so budgeting like crazy (if we budget like Obama budget, then we're in serious trouble) until this guy is out of office. Years from now people will look back and ask "How on earth did that guy win re-election?"

windsor
City, Ut

Wonder if Mitt and Anne are counting their blessings that they don't have to wake up every morning constantly hearing that this and all others things are somehow his fault.

Justmythoughts
Provo, UT

I think the Democrats want to go over the fiscal cliff... Then they can blame Republicans and judging by the last election....most Americans will believe it.

Blue AZ Cougar
,

Slide 7 is a little ironic. "The president said he would consider lowering rates for the top 2 percent of earners next year as part of a broader tax overhaul effort that closes loopholes, limits deductions and finds other sources of revenue."

Doesn't that sound a lot like Romney's tax plan? You know, the plan President Obama said just didn't add up? The plan all the Democrats said would never work? The plan based on broadening the base and lowering the rates?

worf
Mcallen, TX

Wow! National deficit increased sixty percent in just three and a half years, and now we weaken the military.

Why can defense take a cut, but not entitlements?

May our liberal friends get what they voted for.

CougarBlue
Heber City, UT

Moderate your comments show you have not grasped the problem.

A1994
Centerville, UT

Everything is going to be fine. Just fine. We know we elected the most qualified man for President. The one who has a track record of solving problems and working with both parties. Everything will be great because our President has a handle on this whole thing. And it just the rich who are going to feel this and they deserve it anyway. But thankfully we have a President who is serious about cutting the deficit and solving the problem. Right? Right? If we just raise taxes on the rich, the problem with be drastically reduced. Right?

JSB
Sugar City, ID

Incompetent House; incompetent senate; incompetent president. We got who we elected. Now we all have to live with it. Greed, pride, immorality, selfishness, deceit--at the top and trickling down through our whole society. Who will be around to pick up the pieces?

Ultra Bob
Cottonwood Heights, UT

Sometimes I wish the disaster would really happen, just to prove the soothsayers and phony prophets wrong.

JNA
Layton, UT

Here's my take. President Obama wants us to go over the fiscal cliff. That is what he is hoping for because then he can swoop in with his magic and fix things with HUGE government programs thus addicting even more people to the government nipple. At that point, no one will want to work for anything because it will be handed to them, therefore, I believe the Republican party will cease to exist as we know it. Everyone will vote Democratic so they can have their handout to barely survive. Do not be fooled by this President, he is smart and calculating.

Counter Intelligence
Salt Lake City, UT

@Justmythoughts
"I think the Democrats want to go over the fiscal cliff... Then they can blame Republicans and judging by the last election....most Americans will believe it."

Exactly - and that fact is rather horriying

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