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The Fiscal Cliff: Its Impact on You

You can figure out how much Congress' failure to act will impact you financially.

You can't click on a news website, watch CNBC or read the Atlanta Business Chronicle without seeing something about the so-called "fiscal cliff."

Should Congress and the Obama Administration not hammer out an agreement on federal spending and taxes, a $600 billion monkey on the back of the American economy in the form of tax-relief expirations and automatic spending cuts to things like defense spending takes effect Jan. 1.

If that happens, it's going to hit us directly as consumers in our wallets.

Bankrate.com, a consumer banking and finance website, created an easy calculator to help folks figure out just what kind of effect going over the fiscal cliff will have on individual incomes.

For example, someone who earns $60,000 a year, claims one exemption and files as single, stands to pay $13,049 in total federal taxes if we go over the fiscal cliff, compared with the $10,985 he or she currently pays now.

There's no question we have to make some decisions on spending and taxation. What do you think about the fiscal cliff and how should our longterm spending and taxation be addressed?

harry December 17, 2012 at 01:59 PM
Raising the taxes will just not solve the problem,leaving loopholes unplugged.Its a myth that businesses will suffer honestly speaking NO as they have leeways to avoid them,unlike the working class who get HALAL religiously every fortnight.To top it all the CEOS are holier than sacred cows as the companies go down the tube they get special privileges of GOLDEN PARACHUTE stock options at unreasonably low prices just a few perks officially known to public other NON DISCLOUSERS have to be figured out with creative accountancy so called accepted methods.
Andrew December 17, 2012 at 06:25 PM
This whole debate is a joke. This is a spending problem, not a revenue problem. On the spending side we have a three main drivers: Social Security, Medicare, and Defense. (http://en.wikipedia.org/wiki/File:U.S._Federal_Spending_-_FY_2011.png) Here would be my proposal: 1. Slash so called "Defense" spending by at least 50%, if not 75%. You'll see here that nobody even comes close to our spending in this category and most of these countries are our allies!! It's become a total joke, but for some reason people think we can't cut spending here. http://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures 2. Raise the age requirement on Medicare and SS. Make Medicare needs based, like SS. If you want to raise revenues, I'd say this: 1. Stop giving special tax cuts to certain businesses. This is unfair to the business who don't get the cuts. The government should treat all businesses the same, instead of picking favorites. 2. Get rid of the loopholes. 3. Although I don't think raising taxes is necessary, Obama could target the people who make greater than $1M a year. That would be easier politically than targeting $250k and above.

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