What do You Know About Fiscal Cliff? Fiscal Cliff Explained!

What do You Know About Fiscal Cliff? Fiscal Cliff Explained! -- Political gurus and analysts who maybe able to stumble and read this post may find it simple but for the common citizens like me, it might just sound like another jargon heard amidst a crowd of foreigners. So what is this trending term "Fiscal Cliff" really?
Fiscal Cliff is a shorthand term used to mean one of the political issues that the US government is expected to deal with, come the end of 2012. It takes on the occasion where the terms of the Budget Control Act of 2011 are going to take effect. In it, it says that in the midnight of December 31, 2012, the end of last year's temporary payroll tax cuts will be taking effect. It will result to:
  • A 2% tax increase for workers, which also means the;
  • End of the tax breaks for some businesses
  • Shift in the alternative minimum tax
  • Beginning of taxes related to President Obama’s health care law
In a more real score perspective, this budget cut brought about within the spectrum of Fiscal Cliff is the succumbing of about a thousand of government programs to a deep automatic budget cuts, including defense and medical care.

Further Impacts of Fiscal Cliff
Firscal Cliff is seen to bring dramatic impact to the US government, largely in the realm of economy. America's CBO states that this phenomenon will also bring the country's gross domestic product (GDP) down by 4 percent in 2013.

I see similar case with what has been going on in the Philippines. A lot of budget cuts as well as additional appropriations took place in the past years or so and yet, several of the nation's issues are still lingering around like an incurable disease.

No comments:

Post a Comment