What, Exactly, Is the Fiscal Cliff, You Ask?
Posted By Barry Ritholtz On November 14, 2012 @ 11:58 am In Taxes and Policy | Comments Disabled
Think Markets [1] has an excellent piece on the Fiscal Cliff.
The highlights?
1. Table below shows exactly what gets cut if there is no deal
2 Consequences are stacked in “favor” of tax increases – not spending cuts.
3. Only $136 billion in cuts out of a Fed budget of ~$4 trillion for FY 2013.
4. Tax increases are $532 billion (including Bush tax cuts) — Yes, the GOP agreed to Tax to spending cuts of 4X.
5. Defense cuts are ephemeral; as soon as the US encounter any new war, spending quickly ramps up.
Full chart after the jump . . .
Source: WSJ, Think Markets [2]
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/11/what-exactly-is-the-fiscal-cliff-you-ask/
URLs in this post:
[1] Think Markets: http://thinkmarkets.wordpress.com/2012/11/09/fiscal-cliff-sense-and-nonsense/
[2] Think Markets: http://wp.me/pmseG-1sw
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