Now that the Presidential election is over, all that we're hearing on the news is about the "fiscal cliff." The fiscal cliff is that place that the U.S. is going to topple over unless the politicians finally site down and compromise on a number of key issues that they have put off until now because they have not been able to compromise and come to a decision before. Sounds like a bunch of 4-year old's to me. Except 4 year old's don't get to deal with people's money and lives and trillions of dollars.
One key part of the fiscal cliff negotiations is the expiration of the Bush tax cuts which will affect a lot of people in a most negative way. Small businesses won't be affected nearly as much as individuals despite the misleading talk you hear to the contrary. Then there are the automatic spending cuts built in to kick in on January 2 if Congress and the President can't work all this out. There is a plethora of other types of issues out there that make up tax expirations and spending cuts that are going to happen including President Obama's payroll tax holiday. Even the U.S. debt ceiling is in play with Fitch and Moody's saying they will downgrade our credit rating if it becomes the circus it was the last time around.
There is some middle ground our lawmakers can find - if they try. Read the article for all the details.