What is the “Fiscal Cliff”?
Date : 05/05/2012
Author: Rajesh Dheenathayalan
The term “fiscal cliff” refers to a series of fiscal events set to unfold in U.S. at the end of this year and in early 2013. These include:
Tags: US economy, US financial markets, US government
Expiration of the Bush-era tax cuts at the end of 2012, including current lower tax rates on capital gains, dividends, income, and estates, as well as number of other measures.
Expiration of fiscal stimulus measures, such as a 2-percentage-point cut in Social Security payroll taxes and extended unemployment benefits.
Spending cuts of $ 1 trillion over 10 years – which Congress approved during the Republican-led standoff over raising the federal debt ceiling in 2011 – will start kicking at the beginning of 2013.
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