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You've heard of that right the fiscal cleft.
Well whatever you call the financial disaster looming for this economy at the end of the year it will not be pretty.
You can bet your bottom dollar on that when we're talking about big changes in the tax code plus the spending cuts that congress -- too late last year.
Today's numbers from an analysis of the CBO is Congressional Budget Office report conducted by the folks at Lucio and what they show is this.
Big time financial trouble that already has businesses and families fuming.
Take a look at deaths.
Here are the tax.
Hikes bush tax cuts expire some 221.
Billion dollars worth of them.
Its course starting with the income taxes that top rate resets from thirty.
1% to 35% you're probably paying that the estate tax were estates of five million them more resets that 55%.
The alternative minimum tax and -- 31 million Americans it's a disaster.
And the payroll tax holiday that -- stimulus is over that's 95 billion dollars.
New obamacare taxes of course what else would obamacare get us eighteen billion dollars worth the taxes next year.
There other expiring cuts including the marriage penalty 65 billion the total.
Billion dollars of higher taxes coming out in your pocket next year next year believe it or not.
And the government of course saying they're gonna spend less the budget control act -- remember that congress debated that at the end of last year.
They're cutting defense in particular 65 billion.
Emergency unemployment jobless benefits going away for -- lots and lots of Americans some -- -- -- six billion dollars worth.
And finally those Medicare doctor payments.
Those -- cut -- well unless something happens unless congress acts that's eleven billion dollars the total here.
A 103 billion.
So what does all of this mean it means 607.
That's the number the huge number the size of the cliff that were poised at the top.
On one hand the government will collect more in taxes it will also be spending less is well.
According to the CBO report this amounts to get this 4% of GDP 4% we have didn't even have that growth this year.
It is the biggest fiscal tightening since 1962.
When a 3.3 percent tightening was followed by a recession.
It's also equal to about half the fiscal tightening Greece didn't 2010.
On the other hand.
The total of 607 billion is tiny compared to our total debt of now nearly sixteen trillion.
So the and likely combination of massive tax increases in some spending cuts.
Well and may not turn out as intended.
There is no no guarantee the economy will improve as a result -- -- it's apparent -- tax receipts we need to reduce our debt.
In fact -- opposite could happen.
Over the fiscal -- that's right the worst of both worlds a recession that expands our core economic record.
Cutting taxes and government spending that would be the better solution.
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