The so-called “fiscal cliff”is a name that has been attached to
the combination off spending cuts and tax increases at the
federal level that are scheduled to take effect at the end of
2012, if Congress fails to reach an agreement to address the
federal budget deficit. Both the U.S. Senate and the U.S. House
are trying to find a federal budget compromise that can be
passed by both houses of Congress, and ultimately signed into
law by President Obama. Congress has set up legislation that
will allow the automatic tax increases and federal spending
reductions to occur, if no budget agreement is reached. The
automatic tax increases that would occur in 2013, if no
agreement is reached by Congress, would add approximately $550
billion to the Federal treasury next year. If no budget
agreement is reached, the required federal government spending
reductions would reduce federal spending by about $109 billion
in 2013, which would affect nearly every program that receives
federal funding. The combination of the automati