Tuesday 02, October 2012 by Steen Jakobsen

Is the US too close to the fiscal cliff?

If the United States Congress and President Obama don't come up with a deal before the end of 2012, the US will face a "fiscal cliff" on January 1, 2013. The fiscal cliff is the combination of tax cuts expiring, jobless benefits being lowered, higher personal income taxes, and mandatory spending cuts that will come into force automatically. This is a situation created last year when the Congress failed to find a long-term deal on or a solution to the US budget deficit.