The "fiscal cliff": What to expect if there's no deal

[steve2470]

http://www.cbsnews.com/8301-250_162-57560835/the-fiscal-cliff-what-to-expect-if-theres-no-deal/

Well, here we are less than a week before the "fiscal cliff" hits and lawmakers are scrambling to come up with a solution to avert at least part of the "cliff". President Obama has cut short his Hawaiian vacation to help push Congress along; Congress returns today and will immediately get to the business of dealing with the "cliff".

What happens if the country is forced over the "fiscal cliff" on January 1?

Various federal tax cuts and breaks enacted under President George W. Bush expire as well as the payroll tax holiday enacted under President Obama;

About $1.2 trillion in federal spending cuts begin to kick in (approximately $110 billion a year for 10 years), divided equally between the Pentagon and most other federal agencies;

*more at link above*

[sendero]

1. The article is pretty factual...

... except it takes the point of view that if something isn't done by Jan 1, all is lost.

That is of course absurd and congress will act before things get out of hand. They will especially not let the precious Pentagon suffer any real cuts. And most likely a return to current rates for those making less than $250K - $400K will also be enacted, one way or another.

Going over the cliff, for now, is better than any other deal on the table, that is for sure.

[lunatica]

2. Ugh!

It's gotten way beyond nasty in Washington, DC. There is not even a pretense of caring by the GOP. If they can't have 100% of what they want then to hell with everyone else.

And if they do get 100% of what they want it's the same. To hell with everyone else.

[ImaModMan]

3. So what?

The cuts aren't likely to happen right away, if I gather from the article what they are saying correctly. They may not happen at all if a deal is struck in January or February. Looks like business as usual in the government.

[muriel_volestrangler]

4. "federal jobless benefits expire for 2 million unemployed Americans"

This is the one that is not gradual, nor is there any suggested way of putting it off (like "the Treasury Department could, for instance, freeze paycheck withholding levels&quot . Those benefits just disappear for those 2 million.