As the end of the year approaches, so does the â€śfiscal cliffâ€ť: the expiration of the Bush tax cuts and automatic spending cuts of $1.2 trillion known as sequestration are scheduled to take place.
The Congressional Budget Office (CBO) released a report today: Economic Effects of Policies Contributing to Fiscal Tightening in 2013, estimating that significant tax increases and spending cuts scheduled to take effect in January will sharply reduce the federal budget deficit, but also cause â€śa decline in the nationâ€™s economic output and an increase in unemployment. â€ś Essentially, the fiscal cliff could drive the U.S. economy back into recession next year and result in a jump in the jobless rate to 9.1% by the end of 2013.
Question of the week: Which â€śFiscal Cliffâ€ť issues are you most concerned about? (multi-answer)
( ) Rising income tax rates to 15, 28, 31, 36 and 39.6% from 10, 15, 25, 28, 33 and 35%
( ) Capital Gains rate rises from 15 to 20% for most people
( ) Automatic spending cuts to defense budget of $55 billion in 2013
( ) Reduction in the child tax credit from $1,000 per child under 17, to $500 per child under 17
( ) Automatic spending cuts of $55 billion to non-defense discretionary spending in 2013
( ) I am not concerned. These are all appropriate tax increases and spending cuts
( ) Other (share your thoughts on my blog here.)
Take the poll here.
Find out the results of last weekâ€™s instapoll here.
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