Will We Fall Off of the Fiscal Cliff? [POLL]
At the end of this year, America is set to plunge off of the so called “fiscal cliff.” Okay, so maybe it is not as dramatic as it sounds but nearly every American would be affected.
The “fiscal cliff” is merely the term for when the Budget Control Act of 2011 will go into effect. This Act calls for end of the temporary payroll tax cuts, tax breaks for businesses, the end of the Bush tax cuts, and the beginning of taxes associated with Obamacare.
The Budget Control Act also calls for deep cuts in government spending, such as the defense budget and Medicare.
While these action would reduce the deficit (marginally at best), the economy would take a direct blow to the gut again. Unemployment would rise as nearly two millions jobs would be lost. America’s GDP would be slashed by nearly four points according to the Congressional Budget Office.
The fear of falling off of the cliff has already had an impact on the economy and markets. So what do you think? Do you think we will fall off of the “fiscal cliff” or do you think Congress will step in and save the day?
Take the poll below and then check back next week for the results.