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The fiscal Cliff

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Subject: 
Economics
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SocialTags: 
Fiscal policy
Economic policy
Public economics
Public finance
Economy of the United States
United States public debt
Government
Government budget deficit
United States federal budget
Business
Tags: 
American Economy

Welles Harris The Fiscal Cliff The fiscal cliff refers to an automatic $560 billion in tax increases and spending cuts that would go into effect, beginning in January 2013, to supposedly reduce the US budget deficit. Realistically, these cuts and tax increases would only reduce the national debt by a few percentage points. I believe the Simpson-Bowles Budget Alternative is currently the one of the better plans proffered for our country. This bipartisan plan, created by Alan Simpson, a former Republican senator, and Erskin Bowles, a Democrat who was previously the Chief of Staff under the Clinton administration, achieves debt reduction via tax to cuts ratio of 1:2.

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