By now you have probably heard on the news about the impending
“Fiscal Cliff.” Economists are talking about it, politicians are
talking about it, and even your friends may casually mention it
when you are out and about. Like a lot of political and economic
news it often goes in one ear and out another. You may have
heard about it, often most likely, but you really do not know
what it is. The short version: the cliff is the impending budget
deficit cuts and tax “increases”. While on the surface it seems
that reducing the deficit is a good thing, too many cuts all at
once can have damaging effects on the economy. There are three
main components to the cliff that need to be dealt with by
January 1st. At that time we will go over the fiscal cliff, and
most economists agree it will send us into another recession.
Expiration of Bush Tax Cuts In 2001 and 2003 then President Bush
signed into law two acts that helped to lower people’s taxes.
While the actual process and how these provisions affected how
you will pay t