Reasons Why I Hate the Fiscal Cliff

According to this article, tax rated are going up and spending cuts will go into effect. The law's set to change at midnight on December 31, 2012. In dealing with the fiscal cliff, U.S. lawmakers have a choice among three options:

• They can let the current policy which is scheduled for the beginning of 2013. This policy includes tax increases and spending cuts that are expected to drive the economy into a recession.
• They can cancel the tax rates and and spending cuts, which would increase the odds of the United States going through something similar to the current crisis in Europe.
• They could address the budget issues to a limited extent which would have a better impact.

Te non-partisan Congressional Budget Office (CBO) estimates that if Congress takes the middle ground which would extend the Bush-era tax cuts and would cancel the automatic spending cuts then the result, would be modest growth but no major economic hit. As a result, the fiscal cliff won't necessarily be a struggle to grow even if Congress doesn't address the issue until after 2013 has already begun.

The Fiscal Cliff

*I hate the fiscal cliff because it doesn't make sense and I just want to blog about my life.