Fiscal Cliff Update

The Fiscal Cliff is the result of the end of Bush era tax cuts and take place at the start of 2013. The Fiscal Cliff will majorly increase taxes for all and will automatically cut Government spending, unless the President and Congress come to agreement on a new tax plan and or Deficit cuts.

Some people believe that our Government should let us fall off the cliff, saying "We need the cuts anyway", but unfortunately if we go over the cliff we will be set back into a recession and it will ultimately hurt every American including the middle class.

So far our President has proposed a plan that increases tax rates on the "rich" who make $200,000 or more a year to suffice his own spending. His plan is said to create about 1.6 trillion dollars in new revenue, which is about twice as much as he asked before the election and does not include cuts in loop holes and deductions as he promised.

Republicans currently do not agree on his plan and according to John Boehner, we haven't gotten anywhere in means of solving the upcoming crisis. Republicans have said they are willing to negotiate on the right terms, but so far a huge tax hike for the "rich" without cutting loop holes and deduction just seems ridiculous.