Results 1 to 16 of 16

Thread: What is the "fiscal cliff"?

  1. #1

    Default What is the "fiscal cliff"?

    I recently found out that I get cable for free in my apartment, so I hooked it up, and all I've heard for the past few days is the "fiscal cliff". I'm assuming they're talking about whenever the automatic "cuts" go into effect, but why are they calling it a cliff? Nothing is really going to change is it?
    [P]eople of

    [A]merica

    [U]nited for

    [L]iberty



    Quote Originally Posted by jllundqu View Post
    god damn vipers, all of them.



  2. Remove this section of ads by registering.
  3. #2

    Default

    It's just their way of scaring people into thinking we need more taxation and higher debt ceilings. You know, because those are the things that keep us off the cliff.
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  4. #3

    Default

    It's when automatic spending cuts and expiration of the Bush tax cuts go into effect next year due to the Gov't inability to do anything on their own. It's also called sequestration.
    "The principle for which we contend is bound to reassert itself, though it may be at another time and in another form"..... Jefferson Davis

    "When bad men combine, the good must associate; else they will fall one by one, an unpitied sacrifice in a contemptible struggle".
    .....Edmund Burke

    "A corrupt electoral process can only lead to corrupt Government."
    ......jay_dub

  5. #4

    Default

    It was the deal they cut to kick the can down the road and raise the debt ceiling last time. Because they could not reach a compromise budget, certain spending cuts and tax increses will go into effect automatically.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  6. #5
    Member
    Join Date
    Jul 2010
    Location
    Land of Indians
    Posts
    24,922

    Default

    It is when taxes go up , unemployment goes up , stocks go down , social security tax goes up 2 %, holiday spending is over , temp holiday jobs are gone , no growth in the economy, the real layoffs start.

  7. #6
    Member
    Join Date
    Jul 2010
    Location
    Land of Indians
    Posts
    24,922

    Default

    Oh, yes , there will be changes , most of which , most , will not like .

  8. #7

    Default

    Basically the budget is going to be balanced automatically, with tax increases and huge spending cuts. The debate is whether the government can get it together in time to stop it happening.
    Stop the Looting and Start Prosecuting! Gold plated Tungsten IS Money!
    We Must Dissent A colher não existe.
    A government is just a body of people, notably, usually, ungoverned.

    "You mean this entire war started because The Empire dressed as the enemy? That's exactly what happened in the last major war! Our government is so stupid!"

  9. #8

    Default

    Buy Silver and if you can afford it Gold.

    This weekend is still a good time to prepare for this impending disaster as gold and silver didn't go up that much this week (a lot of us said last weekend that it was the time to buy some PMs and if this week was any indicator we were right) their corrections are over and I smell a very good month coming for both.
    Last edited by NoOneButPaul; 11-10-2012 at 01:04 AM.
    It's just an opinion... man...

  10. #9
    Truth is treason ... Occam's Banana's Avatar
    Join Date
    Nov 2010
    Location
    Empire of Lies
    Posts
    7,977

    Default

    Quote Originally Posted by CaptUSA View Post
    It's just their way of scaring people into thinking we need more taxation and higher debt ceilings. You know, because those are the things that keep us off the cliff.
    Exactly. And (of course) they somehow fail to mention that it's those things that created the cliff in the first place. Imagine that.
    tu ne cede malis, sed contra audentior ito · fiat justitia, ruat caelum · sic semper tyrannis
    The Bastiat Collection - FREE PDF

    Frédéric Bastiat
    • "When law and morality are in contradiction to each other, the citizen finds himself in the cruel alternative of either losing his moral sense, or of losing his respect for the law."
      - The Law (p. 54)
    • "Government is that great fiction, through which everybody endeavors to live at the expense of everybody else."
      - Government (p. 99)
    • "[W]ar is always begun in the interest of the few, and at the expense of the many."
      - Economic Sophisms - Second Series (p. 312)
    • "There are two principles that can never be reconciled - Liberty and Constraint."
      - Harmonies of Political Economy - Book One (p. 447)

  11. #10

    Default

    The fiscal cliff is something painful that our economy unfortunately needs.

    On January 1, 2013, the Bush tax cuts, which were extended by bipartisan agreement in 2011, will expire. Federal taxes will rise. They will then immediately revert to the taxes we had at the tail end of the Clinton presidency. If no agreement is reached to postpone the end of the Bush tax cuts, the fiscal cliff kicks in on New Year’s Day as we will also have automatic spending cuts.

    This will be painful because American taxpayers will see their tax burdens increase and their deductibles decrease. The Tax Policy Center (TPC), a joint project of the Urban Institute and the Brookings Institution, estimates that the toll on US households will average $3,500. We will see our after-tax purchasing power lowered.

    More details, also according to the TPC:
    - households with incomes between $108,226 and $143,000 will be taxed an extra $6,359.
    - households with incomes below $20,113 will be taxed an extra $412.
    - The marriage penalty will return on 1/1/2013.
    - The child tax credit will be halved (from $1,000 to $500 per child).
    - The two-percent payroll tax cuts, the earned income tax credit, and the childcare tax credit are some of the tax breaks scheduled to expire. As well, education tax credits, certain business deductions and credits, and deductions for state and local sales taxes are likewise slated to expire.

    Technically, this windfall of new revenue for the federal government would help us reduce our huge annual deficit of over $1 trillion. But if the economy falls into a recession and unemployment rises, tax revenue will shrink, whereas money for unemployment compensation will have to be spent.

    It will most definitely be very painful, but it is the right path – it is, as Peter Schiff said, “part of the solution.” We need lower government spending to make the economy improve.

    Remember one thing though: if the Bush tax cuts do end after all on January 1, 2013, Obama can’t blame Bush as he has since he won his first term. It will all be on him.
    Ron Paul - America, you WILL regret not voting for him!

    KNOWLEDGE IS POWER

  12. #11

    Default

    Find these responses confusing? There's a reason for that.

    There are two 'fiscal cliffs'. One is the automatic stuff that will happen if the government fails to enact certain spending cuts and/or tax hikes that reduce the defecit spending to a certain preset point. If they don't, certain spending cuts and tax hikes will automatically happen due to a law that was passed a few years ago. Why they call it a 'cliff' we can only guess. My educated guess is that they're trying to obfuscate the other 'fiscal cliff'.

    The other fiscal cliff has been mentioned by Ron Paul--he talked about it in his weekly Texas Straight Talk not long ago. This is the point of no return where the only way we can pay the debt by destroying the dollar, an event that won't be good for the economy. Or, if not precisely that, at any rate a worsening of the depression (can we really still call it a 'recession' after over four years?) due in no small part to the fact that the nation is drowning in both debt and excess liquidity and yet still in the middle of a credit crunch.

    So, people who not only can see what's going on and are willing to actually warn us about it call it a fiscal cliff, and with good reason--the Fed is setting us up for a real fall. And, next thing you know, these automatic spending cuts/tax hikes are suddenly being referred to by the entire Mainstream Mafia--er, I mean Media--just all at the same time, all using the same term, all spontaneously, as the other 'fiscal cliff'. Hell of a coincidence, huh? They couldn't be trying to obfuscate the coming crash, could they?

    Nah. Only conspiracy theorists talk that way....
    Quote Originally Posted by John Maynard Keynes
    In the long run we're all dead.
    Quote Originally Posted by Calvin Coolidge
    The attempt to regulate, control, and prescribe all manner of conduct and social relations is very old. It was always the practice of primitive peoples.
    In an insane world, crazy is the new sane.

  13. #12
    Member Zippyjuan's Avatar
    Join Date
    Feb 2008
    Location
    Hosting FEMA Party
    Posts
    19,646

    Default

    Quote Originally Posted by idiom View Post
    Basically the budget is going to be balanced automatically, with tax increases and huge spending cuts. The debate is whether the government can get it together in time to stop it happening.
    Won't be anything near enough to balance the budget but it does start to move in that direction. CBO estimates say it might if the mandated changes continued untouched for the next decade though. (Like THAT will happen!)

    Broad info on the Cliff:
    http://www.forbes.com/sites/abrambro...-fiscal-cliff/
    I am Zippy and I approve of this message. But you don't have to.

  14. #13

    Default

    Everytime I hear about this it makes me think of Vizzini


  15. #14

    Default

    The fiscal cliff is a scare tactic that the most corrupt solons of both parties previously agreed to engage in, as a mechanism to rob you blind once again.
    “If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”

    - SAMUEL ADAMS

  16. #15

    Default

    Quote Originally Posted by Zippyjuan View Post
    Won't be anything near enough to balance the budget but it does start to move in that direction. CBO estimates say it might if the mandated changes continued untouched for the next decade though. (Like THAT will happen!)

    Broad info on the Cliff:
    http://www.forbes.com/sites/abrambro...-fiscal-cliff/
    I thought so. I thought I read something where if we wanted to realistically bring down the debt (disregarding how this motion will destroy/destroys our monetary system) that we would have to tax people at least 75% for the next 30 years or something ludicrous like that.

  17. #16
    Member Zippyjuan's Avatar
    Join Date
    Feb 2008
    Location
    Hosting FEMA Party
    Posts
    19,646

    Default

    There are three significant parts of the US budget. Social Security. Medicare. and the Department of Defense. It is highly unpopular to cut any of these. If you take them off the table, you have to cut 100% of everything else (well, toss in Interest on the Debt since you can't cut that) and you will still have a budget deficit (it will nearly be gone based on 2009 budget figures http://en.wikipedia.org/wiki/2009_Un...federal_budget . Now if you don't cut anything and want to balance with income taxes alone, you have to double what they currently are. This is the difficult math behind trying to balance our budget and getting rid of the deficit (the debt will still exist and continue grow). A few billion in cuts and a few billion in taxes won't get you there. Cut the spending categories left by 50% and raise income taxes by 50% would just about get you balanced.

    When you hear talks about a trillion dollars in cuts, they are talking about is often over 20 years which is only $50 billion a year or barely a tiny dent in the $1 trillion annual deficit.
    I am Zippy and I approve of this message. But you don't have to.





« Previous Thread | Next Thread »


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •