The Fiscal Cliff After reading the assigned articles The Economic Effects of the Fiscal Cliff by Douglas Holtz-Eakin and Ike Brannon, and Divided House Passes Tax Deal in End to Latest Fiscal Standoff by Jennifer Steinhauer, I learned many things about the Fiscal Cliff issue. In this essay, I will like to explain the detail of these two articles as well as some of my thoughts. After reading the articles, I understand that tax revenue and employment are the resources in our economy appear to be scarce. In the articles, the writers mention about raising the tax rate. The government wants to raise the tax rate, because they are not getting enough tax revenue to pay down the debt. The writers also mentioned that many people in America are unemployment. The economy is very bad right now, most employers are not hiring. So, many people cannot find a job. After reading the article, The Economic Effects of the Fiscal Cliff, I understand that the Fiscal Cliff will affect many people in America. People will need to pay much more in taxes, which means people’s income will be less. Also the price of everything will go higher. This will result that people will not willing to spend money. The Fiscal Cliff will also increase unemployment rate. People believe that it will results in a loss of 10 million jobs. The Fiscal Cliff will negatively affect the still recovering economy, because many businesses in our society will be collapse due to higher tax rates for business owners and low consumption rate. Also higher unemployment rate means lower tax revenue and higher unemployment benefits spending. So the Fiscal Cliff will negatively affect the still recovering economy. After reading Divided House Passes Tax Deal in End to Latest Fiscal Standoff, I know that the government will increase taxes on the wealthy. They extended the Bush Tax Cuts for all people with income under $450,000. Simply put, high-income people need to pay higher tax rate, and low-income people remain the same. Also the government will not cutting any benefit services, such as Medicare and unemployment benefit. However, this benefit services policies will be…
A Pragmatic Proposal
A proposal to invade china and kill all to prevent the United States from entering a depression because of the upcoming fiscal cliff in December 2012
America's leaders aren't leading and the damage is mounting. Citizens have complained for years about Washington's squabbling children, who would rather stamp their feet and hold their breath than resolve momentous issues of economic policy. The government officials cannot work together to get their job…
Fiscal Cliff was a major issue in the 2012 Presidential Election. The fiscal cliff is the large spending cuts and tax increases that are scheduled to be automatically enacted in 2012 unless congress takes actions. This was one of the important issues that the two presidential candidates had to address. But of course they both had different views.
The Democrats want a combination of spending cuts and tax increases. Both the Republicans and Democrats are trying to find a way to solve this problem…
Fiscal Cliff Negotiations Delayed
The United States Budget Control Act of 2011 set to take effect midnight Dec.31th. If the Budget Control Act takes affect the economy would be impacted dramatically. Taxes are going to be raised and federal spending will be cut, this would reduce the deficit by an estimated $560 billion. With the higher taxes and less federal spending the gross domestic product is predicted to fall by four percent, therefore sending us…
Discretionary Fiscal Policy The unrestricted changing of government disbursements or taxes
to reach national financial goals, such as extraordinary employment with price constancy.
Economic policy has characteristically been related with the profitable philosophies of “John
Maynard Keynes and what is now called traditional Keynesian analysis.” (Miller, 2014). In the
direction of Keynes and his followers, administration had to step in to raise combined request…
Media Paper: The Fiscal Cliff
The media today gives us Americans access to any type of information we are curious about, but there are faults. Some journalists and reporters of large broadcast networks may have an opinion of their own that they integrate into a story or report, this is called bias. Bias in the current problem involving the fiscal cliff will be targeted and compared from different sources. The fiscal cliff is a combination of expiring tax…
11 December 2012
The Fiscal Cliff
Can the United States handle another recession now or should we delay it until later? This is one of the main questions that President Barak Obama and Congress have to answer by December 31, 2012 in relation to what is now known as the “Fiscal Cliff.” While to some the decision may seem easy, in reality, nearly 500 billion dollars of public debt hangs in the balance. What is being regarded as one of the most important…
effective fiscal policy
The real GDP growth rate has been the consistent priority of every nation’s government as it essentially determines the country’s current economic health. Whether a country can maintain a desirable GDP growth rate or not depends simultaneously on many factors within the economy itself such as CPI, inflation rate, unemployment rate, etc. Therefore, the role of every government is to oversee the current situation of the economy and control it accordingly using its fiscal policy…
Will Increasing Income Taxes Generate Higher Revenue?
In order to relief the major deficit America has been experiencing, President Obama and the Congress have agreed upon some major federal tax increase and spending cut decisions. In this paper, I am going to focus on the effect that marginal tax rates have on government revenue. First, I will look at how changes in marginal tax rates will influence people from different income levels. In addition, I will look at how…
The Cliff Effect
Pushing the Lower Class into Dependency!
Rebecca Gray - April 11, 2014
THE CLIFF EFFECT - REBECCA GRAY
Income Inequality is the unequal distribution income across the various participants in
an economy. What comes to mind for many when considering income inequality is the idea
of fairness. It is generally considered unfair if the rich have a huge control over the economy
or if people from various demographics do not earn money…
“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect. In the United States, the fiscal cliff is the sharp decline in the budget deficit that could have occurred beginning in 2013 due to increased taxes and reduced spending as required by previously enacted laws. Those laws included the expiration of the 2010 Tax Relief Act and…