News How will the looming fiscal cliff impact the US economy and job market?

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The United States faces a significant risk of a deep recession if Congress does not address impending tax hikes and spending cuts, known as the fiscal cliff, which could remove approximately $600 billion from the economy. Economists warn that each dollar of deficit reduction could potentially reduce economic growth by up to $1.70, exacerbating the situation. A report indicates that without intervention, nearly 6 million jobs could be lost by 2014, pushing the unemployment rate to nearly 12 percent. The discussions highlight systemic issues in the U.S. economy, including a polarized government and rising debt, which have been developing over decades. Immediate action is critical to prevent a severe economic downturn and job losses.
  • #201
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I got my first 2013 paycheck on Friday which was significantly lower than similar paychecks in 2012. I know that the paycheck was a guess by my company's payroll department and will be adjusted in the comining months. However, no matter how many times I explained things to my wife last year, it didn't sink in until then. I'm sure that there will be a lot of people similarly 'blindsided' no matter how much it's been in the news.
 
  • #203
Has anyone found out what is actually gone through with this bill that has passed? I've been picking up bits and pieces from around the internet, some from sources more reputable then others.

From these sources I have gathered that
1) the 2% SS tax cut has been allowed to expire.
2) Income rates have gone up on couples making more then 450k and individuals making more then 400k
3) Some rates have gone up on earning from capital and dividends

Part 3 I picked up from a convo on another message board that was not linked to anything, so I really have no idea if that part is true at all.

Also, from an article I read yesterday,
http://www.nationalreview.com/articles/336944/fiscal-cliff-mirage-mark-steyn#
He is claiming that there are 2B a year in cuts, 33B a year in new spending, and the new taxes will increase revenues by some 62B a year. Using some quick math that seems that the deal will only reduce the debt by about 31B a year.

I'm trying to figure out how much of this is true, does someone have some better sources?
 
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  • #204
lisab said:
mheslep, you're right, I totally misread your post :redface:. My apologies.
Appreciated.
 
  • #205
Next up is the conflict over the debt ceiling and expenditure reductions -


Meanwhile, back at the ranch -

Americans feel austerity's bite as payroll taxes rise
http://news.yahoo.com/americans-feel-austeritys-bite-payroll-taxes-rise-141032370.html


Some economists have indicated a growth rate of 0.6% for the US economy in 2013.
 
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