A guide to the Fiscal Cliff

President President President President President Senate Senate Senate Senate Senate House House House House House 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 AMERICA'S DEBT A timeline to the Fiscal Cliff $236B Surplus $127B Surplus $1.1T Deficit Reserve Chairman warns of fiscal cliff Not in Debt In Debt The Fiscal Cliff refers to the 2012 expiry date of the Bush Tax Cuts of 2001 and 2003. $161B Deficit The Fiscal Cliff: Tax increases due to expiration of Bush Tax Cuts Major budget cuts Warning that left unattended fiscal cliff could trigger recession $158B Deficit $1.3T Deficit $1.3T Deficit $248B Deficit $318B Deficit • Bush Tax Cuts extended for 2 years Congress debates over increase in US Debt Ceiling US Credit $378B Deficit $459B Deficit $1.4T Deficit • Simpson -Bowles Commission created to improve fiscal situation, plans never make it to congress Rating downgraded Bush Tax Cuts enacted-expires 12/2010 If America were to go over the Fiscal Cliff: $413B Deficit "Super-committee" created to review and reduce deficit could not make a bipartisan decisions before their deadline An infographic by September 11 attacks occur US & Allies Invade Afghanistan Stock Market tech bubble bursts • Congress enacts $787B stimulus package Auto industry bail out Recession 'ends' mid year Stock market bounces back • Its plan for fiscal reform largely ignored Šplanwise 1. Taxes would increase (costing middle income earners~ $2,000 per annum) 2. Spending cuts across most government spending categories 3. Unemployment benefits for those un-employed longest would run out Housing crisis Global financial crisis US & Allies invade Iraq President Bush & Congress extend tax Stock market crashes Worst US recession since depression • Congress bails out 758 banks Housing Bubble Stock Market recovery References and Sources: Click Here! Am Maximum Debt Allowed (Debt Ceiling)