Back when President Bush’s tax cuts took effect, the only way the Bush administration could get them through Congress was to promise that those tax cuts would expire. December 31, 2012 is the deadline. If lawmakers can't come to an agreement before then, it means higher taxes for you in 2013 and a chance the U.S. economy will drop into another recession.
The average family will pay nearly $3,500 more in taxes in 2013 if 2001 tax cuts expire, which could send the country into another recession, according to a study from the Tax Policy Center on the upcoming fiscal cliff.
 |
| Source: Deseret News |
Nearly 90 percent of Americans would receive tax increases in the coming year if the nation topples off the cliff.
The end of a temporary payroll tax cut may mean growing deficits and an underfunded Social Security system.
The White House and House Republicans have identified areas of significant overlap that could form the basis for a final agreement after "fiscal cliff" posturing gives way to hard bargaining.
Both sides now concede that tax revenue and reductions in entitlement spending are essential elements of any deal. If the talks succeed, it probably will be because House Speaker John Boehner yields on raising tax rates for top earners and the White House bends on how to reduce spending on Medicare and accepts some changes in Social Security.
While Congress and the president wrestle over fiscal cliff negotiations, Rep. Rob Bishop, R-Utah, and the U.S. Chamber of Commerce see one area of untapped potential for reducing the deficit, helping the economy and boosting revenues: energy development.
According to Reuters, President Barack Obama seeks to address the fiscal cliff by letting tax rates rise on incomes over $250,000. Republicans argue that it's possible to raise revenue without raising taxes by reforming the tax code and eliminating some loopholes.
More Americans are worried about their finances as the BankRate.com Financial Security Index fell to 97.1 percent in November, which is the third-lowest result of the year, according to a statement from the website.
Seniors are standing on the edge of the upcoming fiscal cliff, according to U.S. News.
Utah currently is looking at $420 million in new growth for the coming budget year. But state economists estimate Utah would lose not only that but another $500 million if Congress and President Barack Obama don't reach an agreement on spending cuts, tax rates and other financial issues, Herbert said.
The Defense Department has begun planning for the roughly $500 billion in personnel and program cuts over a decade that will be needed if Congress and the White House fail to reach a deal that would avoid the double hit of tax hikes and automatic spending reductions dubbed the "fiscal cliff."
The looming words "fiscal cliff" has weighed heavy on many American's minds lately. If the nation goes over the fiscal cliff, serious consequences for health care could result. Scientific research and public health programs would receive funding cuts. As well as, ACA's Prevention and Public Health Fund could be cut $76 million, according to Kathy Lim Ko's article on The Huffington Post's blog. Deseret News
