Fiscal Cliff

According to the CBO (Congressional Budget Office) because the Supercommittee

failed last December to identify debt reductions, $1.2 trillion of automatic cuts will occur

over the next 9 years (2013-21).

The first cuts amount to $109.3 billion in 2013.

The Bush era tax cuts are also scheduled to expire at the end of the year.

Congress has some interesting choices to make.  They can either let current policy go

into effect at the beginning of 2013.  Taxes will go up across the board and significant

spending cuts will go into effect.

This is going to be an interesting game of chicken as all of this can conspire to tip the

US economy back into a European-like recession.

Learn more about it here.