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mytigger 
LSU Fan
19th hole
Member since Jan 2008
11147 posts
| Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:30 am)
I'd like an explanation of exactly what will happen when we reach this "fiscal cliff". If you can do that without inputting your agenda/slant on it I would be even more appreciative. Thanks.
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tdt
Member since Nov 2012
477 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:31 am to mytigger)
your taxes will go up, spending on defense and entitlements go down and the economy contracts
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NaturalBeam
LSU Fan
Member since Sep 2007
12326 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:32 am to mytigger)
Likely recession in the short-term. Likely overall economic improvement in the long-term.
I don't think it will happen though - they'll find a way to keep kicking the can down the road.
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SilverSpurs13
LSU Fan
Baton Rouge, LA
Member since Aug 2011
1013 posts
 Online
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:32 am to mytigger)
Govt cuts across the board. Taxes go up. Economy goes into recession.
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mytigger
LSU Fan
19th hole
Member since Jan 2008
11147 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:32 am to tdt)
quote:
your taxes will go up
how and why?
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hawkster
Member since Aug 2010
4477 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:34 am to NaturalBeam)
quote:
Likely recession in the short-term. Likely overall economic improvement in the long-term.
I don't think it will happen though - they'll find a way to keep kicking the can down the road.
No matter what happens, the problem will get worse. See "Obama Electoral Demographics".
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mpar98
LSU Fan
Baton Rouge
Member since Jan 2006
3733 posts
Online
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:34 am to mytigger)
Bush tax cuts they put into place when he came into office...are set to expire
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TheOcean 
Florida State Fan
Tampa Bay, FL
Member since Aug 2004
23335 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:35 am to mytigger)
We're all fricked.
Signed,
Political Board Experts
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tdt
Member since Nov 2012
477 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:35 am to mpar98)
quote:
how and why?
bush tax cuts expire and so does the payroll tax
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constant cough 
New Orleans Saints Fan
Lafayette
Member since Jun 2007
28432 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:35 am to tdt)
quote:
your taxes will go up, spending on defense and entitlements go down and the economy contracts
Right. Because we can't cut entitlements 
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mytigger
LSU Fan
19th hole
Member since Jan 2008
11147 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:35 am to mpar98)
I think I can live with this.
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NaturalBeam
LSU Fan
Member since Sep 2007
12326 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:36 am to TheOcean)
quote:
We're all fricked.
Signed,
Political Board Experts
I've read a lot of people around here who think it will be a good thing, myself included.
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Janky
LSU Fan
Team Primo
Member since Jun 2011
2523 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:37 am to mytigger)
quote:
how and why?
All taxes go up income, estate, payroll.....
Also, the pundits think it will knock around 1% off of the GDP. Well, our GDP is only growing around 2%....so you can imagine what that will do.
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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
115739 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:37 am to NaturalBeam)
quote:
I don't think it will happen though - they'll find a way to keep kicking the can down the road.
Probably
Although it might not be a bad idea to wait until the economy is booming to do this
We're barely out of a recession. Not sure it's a great idea to jump right back into one full swing
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I B Freeman
Member since Oct 2009
2192 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:39 am to Powerman)
I would prefer the fiscal cliff happen than not. I do wish the taxes would not rise and the spending was reduced more but that will not happen.
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NaturalBeam
LSU Fan
Member since Sep 2007
12326 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:41 am to I B Freeman)
quote:
I do wish the taxes would not rise and the spending was reduced more but that will not happen
Me too, but give and take. The Dems are the ones insisting on the tax increases - though I don't think they envisioned their own taxes going up, they just wanted it to be the 1%ers. So let them have exactly what they've been begging for. 
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Baloo
LSU Fan
Formerly MDGeaux
Member since Sep 2003
41140 posts
Online
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:41 am to mytigger)
When the Bush tax cuts were passed, they were set to expire after 10 years. the tax cuts expire by law. Congress has to pass a bill in order to pass new tax cuts, or renew the old ones.
Additionally, in order to get the debt ceiling passed, Congress and Obama agreed to create the "fiscal cliff" on January 2nd. If the two sides can't agree on deficit reduction by that debt, the cuts trigger automatically on defense and social spending. It's an across the board 9% cut without discretion. Though Congress could always pass a bill and cancel it if they wanted.
anyway, the cuts are supposed to be so unpopular that neither party would swallow them, which is likely truee, which is also why they won't happen. It's an artificial deadline created by Congress which they can simply cancel.
What's likely to happen is that they keep punting the deadline back, and cuts are agreed to in the next session. If Obama has half a brain, he lets all the tax cuts expire and then has his allies on the Hill propose a new tax cut on January 3rd, the day after the tax cuts expired, proposing a "new" middle class tax cut which is just the old one. This forces the GOP to have to vote against a tax cut because they want the tax cut for those making over $250,000 as well. But the Dems clearly want to separate the middle class tax cuts from those on the upper income. Which is as difficult as waiting two months and proposing a bill.
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Tim
LSU Fan
Texas
Member since Jan 2005
5334 posts
Online
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 9:48 am to Baloo)
I highly doubt this "fiscal cliff" scenario will happen. They will make adjustments, raise the debt ceiling, print more money, continue doing the same thing they've always done. No-one from either party has the balls to say "NO". We will keep plodding along until we no longer have the printing or borrowing capacity, at which point, we are screwed as a nation. It will be so far gone at that point that we will make Greece look like a cake-walk.
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SoulGlo
LSU Fan
Shinin' Through
Member since Dec 2011
1990 posts
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 10:15 am to mytigger)
quote:
how and why?
Bush tax rates go to Clinton tax rates. Big tax increase for EVERYBODY.
Military spending will be cut by $500b. Of course, they'll cut weapons R&D, not the bureaucracy.
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tylercsbn9 
USA Fan
Tomball, TX
Member since Feb 2004
51602 posts
Online
| re: Fiscal Cliff - explain it to me exactly what will happen... (Posted on 11/13/12 at 10:35 am to tdt)
quote:
your taxes will go up, spending on defense and entitlements go down and the economy contracts
Taxes go up on everyone?
And would their be significant cuts?
If yes to both than bring it on.
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