The Fiscal Cliff: A Primer

In case you haven’t read enough on this yet…from the NCPA:

With almost no time to celebrate his reelection, President Obama must quickly come to an agreement with lawmakers on the “fiscal cliff,” a combination of spending cuts and tax increases that pose a threat to the fragile economic recovery, says the Tax Foundation.

The fiscal cliff includes such things as:

  • Expiring provisions of the 2001 and 2003 Bush Tax Cuts.
  • A compromise that will increase the estate tax.
  • A patch in the Alternative Minimum Tax.
  • A temporary 2 percent payroll tax holiday.
  • Five new taxes as a result of the Affordable Care Act.
  • In total, the tax increases are slated to cost around $514 billion.
  • Additionally, there are spending cuts of $109 billion.

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