What Is the Fiscal Cliff and How Will It Impact Our Economy?

What Is The
FISCAL CLIFF
And How Will It Impact The Economy?

The Fiscal Cliff could lower the national deficit by up to $607 billion in 2013 — but at what cost to jobs and our economy?
If Congress can't reach a deal by 2013, all of this kicks in:

$607 BILLION TOTAL

$399 BILLION (66.7%): Changing Tax Provisions

221b: Expiring Bush-era tax cuts and provisions
95b: Expiring Payroll tax holiday
65b: Other expiring tax provisions
18b: New taxes from Affordable Care Act

$103 BILLION (17.0%) : Forced Spending Cuts

65b: Forced Cuts by the Budget Control Act
26b: Expiring unemployment insurance
l1b: Reduced Medicare physician payments

$105 BILLION (17.3%) : Revenue and Spending Changes

Outcomes If We Go Over The Cliff:

Deficit Reduction
The largest single deficit reduction in US history, it could reduce the deficit up to $607 in 2013 - by 5.1% of 2012-2013 real GDP

Economic Contraction
Real GDP could drop by 0.5% in 2013 leading to a possible recession, and financial markets could suffer due to increased caputal gains taxes.

Jobs
Unemployment could spike up to 9.1% by Q4 2013,

Tax Increases
Almost 90% of Americans taxes would go up, with the average taxpayers's bill going up $3,446 in 2013

Up Next For Congress and Obama:
1. Reach deal by end of 2012 or I)uSh to 2013.
2. Vote to raise Debt Ceiling in February.
3. Pass next Continuing Resolution by March 27th.


nerdwallet
we do the homework for you What Is The FISCALCLIFF And How Will It Impact The Economy? The Flscal Cllff could lower the natlonal deflclt by up to S607 blllon In 2013 – but at what cost to jobs and our economy? If Congress Can't Reach a Deal by 2013, All of This Kicks In: $607 BILLION TOTAL $399b:Changlng Tax Provlslons 221b: Expiring Bush-era tax cuts and provisions 95b: Expiring Payroll tax holiday 65b: Other expiring tax provisions 18b: New taxes from Affordable Care Act $103 BILLION $399 BILLION (17.0%) $103b: Forced Spending Cuts 65b: Forced Cuts by the Budget Control Act (65.7%) $105 BILLION 26b: Expiring unemployment insurance 11b: Reduced Medicare physician payments (17.3%) $105b: Revenue and Spending Changes specific policies Other changes not linked Outcomes If We Go Over The Cliff: Deficit Reduction Economic Contraction The largest single deficit reduction in US history, it could reduce the deficit up to $607 in 2013 - by 5.1% of 2012-2013 real GDP. Real GDP could drop by 0.5% in 2013 III RECESSION leading to a possible recession, and financial markets could suffer due to increased capital gains taxes. HELP WANTED Jobs Tax Increases Unemployment could spike up to 9.1% by 04 2013. Almost 90% of Americans' taxes would go up, with the average taxpayer's bill going up $3,446 in 2013. Up Next For Congress and Obama: 1. Reach deal by end of 2012 or push to 2013. 2. Vote to raise Debt Ceiling in February. 3. Pass next Continuing Resolution by March 27th. nerdwallet http://www.cbo.gow/sitea/defaul/filea/cbofiles/attachmenta/FiscalRestraint_0.pdf http://www.taxpolicycenter.org/UploadedPDF412606-toppling-off-the-fiacal-cliff.pdi We do the homework for you. httpa://cbo.gow/aite/default/filea/cbofilen/attachmenta/11-08-12-FiscalTightening.pdf