Fiscal Cliff Research Paper

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The Fiscal Cliff Allison Stewart, Khristy Parham, Ronnie Adger, Steve Fincher ECON 2003 Mr. Alfred Bundrick January 8, 2013 The phrase “Fiscal Cliff” has been in the news for months but many U.S. citizens are not sure what this means or how it will affect them. With the president and both parties of congress blaming the opposing party for the economic situation that the nation now finds itself in, it is understandable that people are confused. However, the fiscal cliff is a real danger to an already weak U.S. economy and if not handled properly, could send the nation spiraling into a deep recession. To understand the economic conundrum the nation is facing the term Fiscal Cliff must be defined and, if allowed to occur, what impact will…show more content…
Possibly the most important showdown was the debt-ceiling fight of August 2011. It “threatened the country's ability to meet its financial obligations and resulted in an unprecedented downgrade in the U.S. credit rating by Standard and Poor's. The subsequent failure of the bipartisan super-committee to reach a deal on $1.2 trillion in targeted budget savings over ten years unleashed automatic spending cuts for both defense and non-defense spending”…show more content…
It’s not sure how much more. Most Americans truly want to know what the solution will be regarding the fiscal cliffs. Everybody will be affected by the fiscal cliff. It will be a temporary fix to the nation's debt crisis. Politicians in Washington were supposed to work on a permanent plan over the past year and a half. Last year's temporary payroll tax cuts will expire, hiking taxes on all workers by two percent. Everyone will have to make the decision what they feel will be the best interest for the U.S. economy (Hoehn) . Both parties agree that something must be done. They must find a solution to fix the debt for the U.S. Some backed the idea of short term fixes while working on the long term changes later. Short term would be returning tax breaks with some pain for those making more and making some cuts to the budget. Not all, but many, agreed that much can be done now

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