Debt Ceiling
AKA "Fiscal Cliff"
Quick Explanation of the Fiscal Cliff
(Baker)
The "Fiscal Cliff" Explained In 60 Seconds
The "Hurricane Sandy" of the U.S. Economy
Forbes.com tells us to "Think of it as the economic version of Hurricane Sandy" explaining how death is a very real possibility, not only from the actual hurricane, but from the fiscal cliff as well.
(Beck)
December 15, 1995 Government Shutdown
Democrats & republicans couldn't agree on a final budget. (wallstreetdaily.com)
January 1, 2014 Government Shutdown
Budget deficit was rising too quickly, while public spending (equaling taxes) was increasing too slowly. (Fieldhouse)
(Beck)
Republican Plan
- $800 Billion tax increase over 10 years
- Curb unspecified tax
Photo credit: http://www.yanceycountyrepublicanparty.com/
Obama's Plan
- Increase tax by $1.6 trillion over 10 years
- Return to Clinton-era tax levels: 36% (lower class) and 39.6% (upper class)
- Return estate tax to 2009 level
(How the Obama and Republican 'Fiscal Cliff' Plans Differ)
Photo credit: http://commons.wikimedia.org/wiki/File:President_Barack_Obama.jpg
Impact of going over the Fiscal Cliff
- Cheaper gasoline
- Longer waits at airports
- Pricier groceries
Bigger retail discounts
- Riskier foods and drugs
(Grant)